Tuesday, October 14, 2008

What is Happening In Our International Political Economy?

We are living through some very interesting days, particularly when it comes to the rapidly changing landscape of the international political economy.


For some pretty cool picks on what is happening in the International Political Economy, check out this link:

www.globalnewspost.com


posted by Ruel Haymond of Project Liberty


Read more!

Monday, October 6, 2008

Are We Headed for another Great Depression?

Posted by Dean Morgan of Project Liberty


Some say we are, so at the end of this message I will discuss what you can do to prepare for it.

But first, what I am about to tell you may shock you. In short:

1. Government intervention made the Great Depression worse, not better. Depending on who’s elected President, the same could happen again.

2. Too much government intervention, not a lack of regulation, caused our crisis.

3. The government is to blame, not irresponsible borrowers or greedy executives.

4. California is next in line for a government bail out.

5. Things will get much worse because of a game of financial chicken.


While we aren’t anywhere near another Depression (25% unemployment then vs. 6% now), some experts say a Depression is actually possible, especially if government makes the same mistakes it made trying to fix the Great Depression which started in 1929. As a result, the stock market didn’t recover to it’s pre-Depression level until 1954!


***Government Regulation Made the Depression Worse, Not Better***

Contrary to the popular belief that President Roosevelt’s big government programs caused a recovery, the Depression actually lasted much longer than it should have because President Roosevelt raised taxes and many businesses had to shut down leading to more unemployment.


***Too Much Government Intervention CAUSED our Current Crisis!!***

Will the Government save us this time? Don’t count on it. You simply cannot legislate a recovery. In fact, while many are calling for more regulations, if history is any indication, government intervention is likely to make matters WORSE.

And more to the point, the current financial crisis was actually caused by TOO MUCH REGUATION, not a lack thereof like most people assume. Here’s why:

Most of you know that lots of bad mortgages owned by Freddie Mac and Fannie May and other banks and brokerage firms is why we have a credit crisis. But exactly WHO is to blame?

DON’T BLAME THE BORROWERS: Sure, people shouldn’t borrow beyond their means, but let’s be real. When someone hands people free money for a house, car and anything and everything else, people will simply take it! It’s human nature.

DON’T BLAME GREEDY WALL STREET EXECS: Yeah, sure they ARE greedy, but greed is an unavoidable in a capitalist society. Fear and greed drive free markets, and always will. The FBI is investigating some firms, and they might find a few instances of fraud, but the fact remains that if you allow people to make easy money without breaking the law, they will!

DO BLAME THE GOVERNMENT!!: Not only was what the wall street companies doing legal, but the government encouraged it! Even worse, some in congress prevented attempts by those who saw the writing on the wall to pull the reigns.

Yes, blame the Government, because well-intentioned politicians, starting with Bill Clinton who enacted some low income lending policies, FORCED Fannie & Freddie to increase their portfolios of sub prime debt to unprecedented levels so that poor people could own homes.

And to ensure banks were loaning to people who couldn’t afford to repay the loans, a liberal group called ACORN, funded by Congressional Democrats, went around suing banks that refused to make what they called “financially irresponsible” loans.

In 2004 the Bush administration sounded the alarm and proposed legislative changes to reel in Freddie and Fannie that were voted down strictly along party lines in the Congress. In 2005 Josh McCain made another attempt, but the reform never made it out of the Democratic controlled committee to the Senate floor for a vote.

To ensure these bills would never pass, Fannie and Freddie spent hundreds of millions of dollars on lobbyists to ensure they could keep loaning to everyone and anyone. Senator Chris Dodd (D) Chairman of the Senate Finance Committee received the most campaign contributions of anyone in Congress throughout his many years. Barak Obama is #2 on the donation list after only 3 years in the Senate.

Here you can watch a bunch of politicians in one party saying Fannie & Freddie are just fine, while others try to sound the alarm unsuccessfully: http://tinyurl.com/3nkrp7

So, in the name of “fairness”, bad loans were made to people who couldn’t afford them, and the institutions doing the lending “kicked back” money to the politicians who protected them.

You see, it wasn’t a lack of regulation, but government interference in the private market FORCING banks to make bad business decisions that caused this mess.

***California may be Next in the Government Bailout***

Because of the current credit crisis, the State can’t get the loans it needs until tax time. The Governor has sent a letter to US Treasury Secretary Paulson stating that if things don’t improve by the end of the month, the State will need $7 Billion. 15 other states are in the same situation!

***Chicken or Egg? A Nasty Game of Chicken***

Banks are simply unwilling to lend until home prices start to rise. But it’s the availability of credit and loans that cause home prices to rise and fall! So banks and the housing market are playing a nasty game of chicken. And there’s a lot more properties in foreclosure that will get dumped on the market adding to the current supply, with few who can get loans to buy them, even if they qualify.

Unfortunately, the “bail out” bill won’t spark a recovery. It’s simply a plug in a leaking dyke. Even worse, some experts say 1 in 8 jobs are related to housing. Plus people aren’t spending, either because they won’t or they can’t. A new report says 1 in 5 car dealerships are about to fail.

***Prepare Yourself***

So what can you do? First, ensure you have reliable sources of income. Since anyone who has a job is susceptible to a layoff, ensure you have other methods for making money. In a down economy most people get hosed. Only a few prosper.

If you want to prosper too, determine who they are and do what they do!

In that regard, SOCALCIA has scheduled 2 of the most successful money makers in SoCal to speak: Jeff Adams and Bruce Norris. Jeff Adams will be our keynote speaker at this Thursday Oct 9, and Bruce Norris is coming November 20. Learn more at www.socalcia.com


Any other comments related to preparing yourself? Read more!

Wednesday, October 1, 2008

Should Investors Use Gold as Hedge During Times of Financial Uncertainty?

“It is well that the people of the Nation do not understand our banking and monetary system, for it they did, I believe there would be a revolution before tomorrow morning.” –Henry Ford

Yesterday when the House of Representatives voted down the financial bailout package,
the Dow Industrial experienced its biggest one-day drop in the Index's 102-year history falling 777.68 points.

And there still is no financial plan in place to help revive the economy.

Historically during times of financial uncertainty, investors have turned to Gold as a hedge. This is because gold is the type of investment that is always an asset. (not simultaneously someone else’s liability).

"Investors are leaning toward it as a hedge against what could happen next,” says Carlos Sanchez, a precious-metals analyst with CPM Group.

But, according to the author of an article I found at www.InflationData.com , Gold is actually a “crisis hedge’ not an “inflation hedge.”

During times of crisis, governments tend to lose control over the price of Gold. However, during more peaceful times, governments are able to keep a ceiling on the price of Gold. This causes Gold to move up in a “stair step” manner.

The author of this article at inflationdata.com also says that gold as an inflation hedge has “a very spotty record.”

But is Gold is a bad investment now? Of course not. However, I do tend to agree with the author’s notion about why the price of gold has not done well over the last twenty years. (See image: price of gold over last 20 years).

The author infers that Governments have historically been known to buy and sell Gold on a whim to create an a sort of “illusion of stability.” The low volume of the gold market compared with say the stock market also lends to it being seemingly easily manipulated by governments.

Most investors in my circle don’t know that, up until about five years ago, it was illegal to invest in gold in China. When that market opened up, obviously there was an increase in worldwide demand for gold when China was free to buy Gold. (See image: price of gold over last 8 years) By 2006, the Shanghai Gold Exchange had become the world’s largest trading exchange for gold bullion with its trading volume well ahead of London, New York, and Hong Kong! Now that’s an incredible fact to ponder on when looking at the price of gold.

But if not Gold as an effective inflation hedge then what are some other inflation hedges?

Commodities ?

Price Inflation is defined as the increase in the costs of various commodities. (Although it is also caused by an increase in the money supply). The idea is that, by investing in various commodities, you should be able to at least break even. What commodities have historically done well in times of inflation? Oil. And oil is also a primary component of the increase in the consumer price index. Also, think about the fact that China is also increasing the global demand for oil along with gold. China will also increase demand for other precious metals. And what about world demand for food and what that will do to its prices? Yippee.

 *Inflation indexed bonds ?

Yes, there is such a thing .These bonds have an inflation adjustment characteristic. But they are not adjusted according to the “actual” inflation rate of course.

Any other suggestions for inflation hedges besides the ones I’ve mentioned in this post? Or any thoughts on utilizing gold as an inflation hedge? Read more!

Thursday, September 18, 2008

Gold Recorded its Biggest One-Day Gain in Nine Years

Is this the start of a new bull market in gold?
The price of gold soared 9 per cent in one session to end the Wednesday trading session at $US850.50 an ounce. This percentage gain was the most in one session since September of 1999.
BGF Equities analyst Warwick Grigor said, “A large move in gold overnight is a signal that times are changing. It is not an intra-market movement — it is more fundamental.” He also said, “This could be the start of a new bull market in gold.”
But why has the price of gold being going down in the last few weeks? One reason is that hedge funds have been getting rid of their gold to raise cash to pay brokers who had lent them money to make investments. However, this was slightly offset by the Fannie Mae/Freddie Mac bailout that actually pushed gold prices up.
Analysts think the price of gold will continue to rise in the next few months. What do you think and why?
Read more!

Wednesday, September 17, 2008

AIG´s $1 Trillion Bankruptcy Would Be World´s Largest Ever

The Fed Comes to the Rescue Again!!
AIG's troubles, similar to its Wall Street peers, stem from guarantees it wrote on mortgage-linked derivatives that have left it with a total of $18 billion in losses over the past three quarters as well as its stock price having fallen more than 91% so far this year.
As of yesterday, the Fed has agreed to loan AIG some $85 billion for a 79.9% stake in the company. Whew! Now that’s what I call a rescue! Get those printing presses running! They say that the loan will be repaid with the sale of AIG assets and not with taxpayers dollars. I don’t agree with this. I tend to think that the taxpayers will just continue to pay for the greed and mismanagement of assets that these companies have been running on for years.
Any thoughts on this?
Read more!

Monday, September 15, 2008

Want to Save Money in Taxes This Year?

Tax Deductions That May Surprise You
This post on savingtoinvest.com I passed on to friends as there were some items in there that I was unaware of. Particularly being able to deduct my mortgage insurance premium. I just purchased a house and got an FHA loan so my mortgage insurance is through the roof! Its good to know that I can deduct this. Also, deducting start-up costs for a business is something that a lot people tend to overlook, particularly when they are so wrapped up in getting their businesses going.
A lot of CPAs will not go out of their way to suggest creative deductions, they will just do what you tell them to do. This is why its good to know all of these types of tax loopholes when getting all of your tax stuff ready to hand in to your accountant at the end of the year, or whenever you do your taxes. By the way, one of the biggest tax loopholes of the rich that I had no idea about is called ‘Cost Segregation.’ I did a post about it last month on this blog. Here’s a link to it if you’d like to know more: http://thinktankinvesting.com/how-do-companies-like-trump-realty-and-wal-mart-save-millions-of-dollars-on-taxes/
Any other tax deductions that you’d like to enlighten us about? Please share!
Read more!

Friday, September 12, 2008

Bad Business Decision For Apple?

Apple Extends Exclusive Agreement With AT & T

I found this article on localtechwire.com and decided to blog on it because I have been thinking a little about this. I have been wondering why Apple would choose to go exclusive with one carrier in the first place. Any thoughts on why Apple would make this business move given the high demand for the phones? From the article came a few thoughts I agree with (see below).
"If Apple made the iPhone available for AT&T, T-Mobile, and Verizon users, can you imagine the selling frenzy? The company would be at the center of one of the most monumental days in the history of technology. If the iPhone 3G can sell this well on one carrier, I can't imagine how well it would sell on the top three."

”While I don’t think Apple has little faith in its product, I do think this is a poor decision. The iPhone has a chance to become not only the dominant smartphone for the coming years, but also the first real powerhouse in mobile computing. By limiting the device to one carrier, it limits its potential to reach such goals.”
Any other thoughts on this?


Read more!

Wednesday, September 10, 2008

6 Deadly Investing Mistakes

6 Deadly Investing Mistakes

Comments on article by William Lynott found at bankrate.com

Source: http://www.bankrate.com/brm/news/investing/20080822_6_investing_mistakes_a1.asp

Given that this article is coming from Bankrate.com I take a lot of things in there with a grain of salt. “Bill, I want you to create a piece called 6 deadly investment mistakes…yea yea, I’m likin’ the sound of that..”

Its definitely skewed like so many things on the Internet, including blog posts but it drew me in nonetheless.

Under mistake #1, I completely agree with Bill here but I always get a laugh from comments like that from Lisa Feathergill. She sounds like a typical stockbroker, "Remember, you haven't lost money until you actually sell the security. I know a guy who followed this advice and watched his million dollars in stock turn into zero dollars in a very short amount of time. Ouch!!

I agree with Mistake #3 that savvy investors make more money during downturns in the economy, however I’m having trouble with his stock pushing again. In my humble opinion, unless you are lucky, stocks wont’ make you rich Bill. Any comments on this?

I wholeheartedly agree with Mistake #6, Abandoning your investment strategy. Bill’s right. Whatever you decide to invest in, stocks, bonds, real estate, gold or silver…stick to the plan.

I think the worst thing any investor can do is react to the whims of the media about the investment environment, from wherever you are looking. Bill wrote, and I agree, “If the headlines are full of it and everyone else is doing it, you're probably too late.”

Does anyone have any other comments or thoughts on these 6 deadly investing mistakes? I’d love to hear from you. Read more!

Sunday, September 7, 2008

Why Proper Estate Planning Is So Important

I Already Have a Will, What Else Do I Need?


Many people are proud to say they have a Will already set up, but why is this not sufficient for estate planning?

Contrary to what most people believe, a Will doesn’t avoid probate, in fact, it guarantees probate. A Will must be verified by the probate court before it can be enforced. Another problem with a Will is that it can only go into effect after you die. But what if you become physically or mentally incapacitated?

What is probate? Probate is a court process required when you die to assure debts are paid and assets are distributed according to your Will. Assets are frozen during this process, and in California it can take from 6 months to 2 years! If you own property in more than one state, there may be a probate in each state. You must also pay probate fees to an attorney/executor in the amount of 5% of the gross value of your estate! Another problem with going into probate is that, during the probate period, the public is able to see what you owned and who your creditors were etc.


A Living Trust is similar to a Will in that it includes the instructions for what you want to happen with your assets when you die. But unlike a Will, a Living Trust avoids probate at death, and also prevents the court from controlling assets at incapacity. A trust simply transfers assets from your name to the name of your trust, which you control. The trust then owns your assets and you designate a back up trustee to handle your trust (according to your instructions). Upon your death, since your assets are “owned” by the Trust, there is nothing to probate.

Here are a few of the advantages of using the Living Trust over the Will:

    * Avoids probate at death
    * Avoids multiple probates if you own property in more than one state
    * Prevents court control of assets at incapacity
    * Provides maximum privacy
    * Allows quick distribution of assets
    *Assets can remain in Trust until beneficiaries reach the age(s) you want them to inherit
    * Can reduce or eliminate estate taxes
    * Can be changed or cancelled at any time
    * Difficult to contest
    *Can protect dependents with special needs

But one question I have is: what if I’m single with no children? Would it still be better for me to use a Revocable Living Trust instead of a Will?

Read more!

Thursday, September 4, 2008

Oil: How low can it go?

Oil: How low can it go?

Article found on CNN Money

With the little bit of relief that we’ve all experienced at the pump, it is easy for people to lose sight of the fact that six months ago we all would have thought that $3.75 was high. (at about $108 a barrel, the price of oil is around 50% higher than it was a year ago). Referring to this recent CNN Money article, although the article is extremely pessimistic, I do agree with the Resler’s insight about the proliferating effects of the higher prices on the consumer mindset, “even if they (oil prices) continue to fall, consumers may be wary for the next few months.”

Any thoughts or comments on this?

http://money.cnn.com/2008/09/03/markets/thebuzz/index.htm?postversion=2008090311 Read more!

Tuesday, September 2, 2008

Make a Comeback in a Stalled Job Search

Source http://lifehacker.com/5043382/make-a-comeback-in-a-stalled-job-search

Most business people are completely out of tune with this new phenomena of social media and really…how many business executives have time to regularly post on blogs or create a Facebook profile? Although its obvious to see how a blog in conjunction with a good resume is a must for tech professional on the job search, I also think that a blog is a good addition to a business executive’s job search. A blog is a great snapshot of a business executive’s projects, business ventures, and other accomplishments and interests. But who has time to create a mind blowing resume, much less a mind blowing blog? I found a professional blogger who created a blog for me relatively inexpensively and so far it has been an excellent accompaniment to my resume. But…I don’t know if it would actually help, “make a comeback in a stalled job search,” as the post on lifehacker.com indicates. If you are serious about a blog, use a professional blogger (person who blogs !) that has experience creating blogs. Particularly if you are considering a blog or forum for your business, there is a ton of research and traffic driving stuff that goes into it so leave it to pro bloggers.

Posted by Corey Read more!

Why Generation Y is broke

http://articles.moneycentral.msn.com/Investing/HomeMortgageSavings/WhyGenerationYIsBroke.aspx


This article on MSN Money really caught my eye. The article said that “…some 85% of those aged 25 and older hold a high school diploma, and 27% have a college degree, and is of course, the most technologically sophisticated to date…”

But this same generation has zero financial literacy. Most twenty-somethings can barely manage their own personal finances much less knowing what a balance sheet and/or income statement is. And with the introduction of so many new financial products, young people are even more doomed in this new financial landscape. Should financial literacy be taught in schools so that we don’t raise another generation on debt? Any comments? Read more!

Friday, August 29, 2008

10 Things Millionaires Won't Tell You

Source: http://www.smartmoney.com/10things/index.cfm?story=september2008-10-things-millionaires-will-not-tell-you
1. "You may think I'm rich, but I don't." While $1 million was a tidy sum three decades ago, you'd need $3.6 million for the same purchasing power today. So what does it take to feel truly rich? The magic number is $23 million, according to Fidelity.


2. "I shop at Wal-Mart..."

3.    "...but I didn't get rich by skimping on lattes." So how do you join the millionaires' club? You could buy stocks or real estate, play the slots in Vegas — or take the most common path: running your own business. That's how half of all millionaires made their money, according to the AmEx/Harrison survey. About a third had a professional practice or worked in the corporate world; only 3 percent inherited their wealth.

4.  "I have a concierge for everything.
What??

5. "You don't get rich by being nice."

6. "Taxes are for little people."
The wealthy tend to derive a higher portion of their income from dividends and capital gains, which are taxed at lower rates than wages (15 percent for long-term capital gains versus 25 percent for middle-class wages). Also, high-income earners pay Social Security tax only on their first $97,500 of income.
But the big savings come from owning a business and deducting everything related to it.

7. "I was a B student."
According to the book "The Millionaire Mind," the median college grade point average for millionaires is 2.9, and the average SAT score is 1190 — hardly Harvard material.

8. "Like my Ferrari? It's a rental."
Why spend $3,000 on a Versace bag that'll be out of style as soon as next season when you can rent it for $175 a month? For that matter, why blow $250,000 on a Ferrari when for $25,000 it can be yours for a few weekends a year?

9. "Turns out money can buy happiness."
It may not be comforting to folks who aren't minting cash, but the rich really are different. "There's no group in America that's happier than the wealthy," says Taylor, of the Harrison Group. Roughly 70 percent of millionaires say that money"created" more happiness for them, he notes. "People experience their day very differently when they have a lot of money," Stevenson says.

10. "You worry about the Joneses — I worry about keeping up with the Trumps."
"Millionaires are always looking up," says Schiff, "and think it's better up there."
Posted by Corey of Project Liberty
Read more!

Thursday, August 28, 2008

How Do Companies Like Trump Realty and Wal-Mart Save Millions of Dollars on Taxes?

Loopholes of the Rich: What is Cost Segregation?
Steve Ruf and Darrell Weaver of Cost Segregation Authority joined us for a Master Mind last night to talk about how to enjoy enormous tax savings on your commercial properties.
Cost Segregation is a way to increase/accelerate depreciation and maximize tax deductions on commercial property. By performing a study, whereas they do a reclassification of assets to increase cash flow and maximize tax deduction, investors can enjoy benefits that are unknown to most investors.
Cost segregation is now approx.10 yrs old. How did cost segregation get into the main stream? The IRS put conditions on it to control how it is used. Surprise, surprise! Large real estate companies use this method, such as Trump Realty and the Bellagio. Small producers are usually not familiar with cost segregation. Darrell Weaver adds that it is essentially a “tool of the rich.”
Please add your two cents on cost segregation if you have some cents…!
Contact info for Darrell Weaver: dweaver@costsegauthority.com
Posted by Corey of Project Liberty
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Wednesday, August 27, 2008

As gas prices go down, so will food, right? No.

Consumers hoping for easing of supercharged inflation likely won’t see it
http://www.msnbc.msn.com/id/26316365/

Corn and soybeans have dropped 24 percent and 17 percent, respectively, in the last two months but food prices have continued to go through the roof. If commodity prices have dropped, why are food costs still going up? This article says that retail prices for cereal, eggs, cheese and meat generally lag by several months or longer. With commodity prices being so high this past year, its no wonder that retail food prices in the U.S. have jumped on average 6 percent this year — triple the normal inflation rate of around 2 percent.

I thought it was just a rumor that food manufacturers have done such things as “shrinking boxes of cereal and bags of potato chips so they can sell less product for the same price.” The article also mentions a factor that is keeping food prices high: Although commodities prices have gone down, they're still well above historical levels. Corn and soybeans have dropped 24 percent and 17 percent, respectively, in the last two months but are still about double where they were two years ago.

Any comments on this supercharged inflation or what the future holds in regard to food prices?

Posted by Corey of Project Liberty


Read more!

Tuesday, August 26, 2008

Why is Florida gas cheaper??

My father in law has a home in St. Lucie Florida. I asked him yesterday what was the price of gas? $ 3.68 per gal. What’s up with that? How in the name of cents, can I be paying $3.98 up here in Kaysville, even up to $4.03. Any one out there have any ideas? A limo driver told me that us here in Utah should be getting gas cheaper, because is comes from Wyoming, and that Florida gas comes from over in Saudi or some where. I don’t know if this is true or not, but if it is, that’s pretty bad that, oil from Saudi is cheaper than our own right under our feet!


Back home in the Bahamas 3 weeks ago, gas was $6.27 per gallon and diesel was $6.72, lets hope it don’t reach that much here, it’ll be a whole lota people peddling to work.
 
Dino Read more!

Friday, August 22, 2008

What Is the Tytler Cycle? Where Is the United States In This Cycle?

What is the   What is the Tytler Cycle ?

Alexander Tytler, a Scottish historian who lived at the same time as the American Founding Fathers, who described a repeating cycle in history. He had found that societies went through this same cycle again and again, and that the cycle lasted roughly 200 years each time. Tytler said the cycle starts out with a society in bondage. Then it goes in this sequence:

Bondage
Spiritual Faith
Courage
Liberty
Abundance
Selfishness
Complacency
Apathy
Dependence
Then starting over with Bondage

Tytler organized these items in a circle:
















So to give a little more on the sequence above, a society starts out in bondage, meaning no or very limited freedoms. Now faced with a very difficult situation (bondage), they turn to religion and religious faith. Through this they achieve the courage they need to fight for and win their freedom. Next, through the benefits of freedom, they achieve an abundance in material things.

Now we start into the other side of the circle/cycle. We get selfishness and laziness setting in. Then we get apathy and finally dependence. Then we arrive back up at the top with bondage again.
Most of Tytler's work has been completely lost. I found this cycle to be very interesting in relation to where we are in the United States today. Everyone has said we are somewhere on the left side of the circle. I think we are somewhere between Apathy and Dependence. Any opinions on this? Comments?

Posted by Corey of Project Liberty



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Thursday, August 21, 2008

Is Now a Good Time To Do Some Real Estate Investing Overseas?

What should you look for in an overseas property investment? Now that investing in property in our economy has become a risky venture in itself, maybe it’s time to look overseas. I’ve heard that it is a drawn out process (also mentioned in the article) and don’t know if it is worth the hassle. Does anyone have any thoughts or is currently contemplating investing overseas?

http://www.realestateweblog.org/due-diligence-and-overseas-property-investment.php Read more!

Wednesday, August 20, 2008

Nouriel Roubini, Economics Professor, Announced Our Current Crisis Before it Happened and Lost His Job Because of it

People are finally paying attention to Nouriel Roubini’s thoughts on the future state of our economy. After being dismissed two years ago after envisioning the events that have caused this recession , economics professor Nouriel Roubini is being taken more seriously this time around. While others are announcing we have seen the worst of these problems, Roubini disagrees. (Quote in article: “We have a sub prime financial system,” he said, “not a sub prime mortgage market.”) But what does this mean? Any thoughts or answers to this question?


http://www.nytimes.com/2008/08/17/magazine/17pessimist-t.html?_r=2&pagewanted=all&oref=slogin&oref=slogin Read more!

Results From Simulated Options Trade From Last Month

For anyone that did a simulated option trade as we discussed at last month’s Stock & Options Trading Symposium, here are the results:


SLB closed at 91.41 on Friday Aug 15th, which was the options expiration day. Right at the bottom of the trading range. Therefore, both legs of the options strangle that we entered, closed OTM and both legs of the option trade closed profitable… ie… you would have made $2050 on a $5k investment in one month!!


Posted by Cary Valerio of Project Liberty Read more!

 

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