Economics

   #41  

Jack@European_Parts

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I gave up trying to figure out the market several years ago. Technical traders are making decisions based on the shape of a line on a graph, completely ignoring financial realities behind that line and its shape! My feeling now is to just go with the insanity, and be in a position to bail when things get stupid.....

Sorry folks......... "parks closed"......... big moose out front should of told ya.

Yeah.........right good coffee!......... kind of hard when every asshole is trying set a limit order to circumvent the seller fees & at those lock limit days .........the market or market maker ear marks your shit & just trades right through you, and......... you lose.

That's the point on a long .......no way out!

Read the new fine print for extreme volatility!


NostraJackAss Has Spoken!





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   #42  

DV52

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Long is for fools short or not!

NostraJackAss Has Spoken!
Jack: I really don't mean to be constantly taking a different stance and I'm a firm believer that markets ONLY work correctly when they have participants that take opposite positions, but I have to make comment on your statement above (sorry)!

The foolishness of "Long" market players (being those participants that "look-like" sellers, but aren't necessarily sellers -but this is an entirely different discussion) is not absolute IMHO.

If Jack the investor had a view that the price of a stock was going to rise in the foreseeable future (this is called a "contango" forward price curve in trading parlance), then Jack would wisely buy the stock now in anticipation of selling the stock sometime later at the higher price. Jack would therefore be "long" in the market and his state of foolishness would be confirmed, or not confirmed when he closed-out his market position in the future.

Similarly, if Jack had a view that the price of a stock was going to drop in the foreseeable future (this is called a "backwardation" forward price curve in trading parlance), then Jack would wisely sell the stock now and buy more stock at a later time when it was cheaper. Jack would therefore be "short" in the market and his state of foolishness would again be confirmed, or not confirmed when he re-entered the market in the future.

So long market players most certainly DON'T have a monopoly on foolishness- I believe!

Don
 
   #43  

DV52

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My retirement account has 35% of all contributions going straight into a guaranteed 3% fund...that actually made 3.875% last year. The rationale for this is that I have to contribute 5% of my salary, and every dime of that is guaranteed to make me at least 3% per year and never go down or be lost. As a friend of mine who used to spend his free time in casinos used to say, keep your own money safe and play with the house's money (ie: my employer's 12% match). That's why the other 65% is in retirement-grade equities and other more-risky investment vehicles.
vreihen: What a marvelous and profoundly appropriate example that you have quoted of a market where an ordinary investor (vreihen) is benefiting from a well functioning secondary market in derivative instruments (financial hedges)!

If you step-back from your retirement account and consider how the fund is able to give you a "guaranteed 3% return", you will doubtless come to the conclusion that the fund has "taken a forward position" with a counter party who has been willing to stand as surety that prices in the future won't drop below 3 %. Of course, the fund can take an open position in the market against the guaranteed 3% return, but I doubt that this would be allowed by the Board of Directors given that retirement funds generally have an ultra conservative risk profile. So almost certainly, your fund is a party to a market deal with a participant who has a reputable financial standing as guarantor (via a hedge instrument). Also, because the fund keeps the upside (when returns exceed 3%), I suspect that the deal involves some form of call/put option with the fund paying an upfront premium equal to the agreed risk between the counterparties!

Truly, a good example of small market players leveraging their positions via sophistical financial instruments -thereby making markets accessible to all- I think!

Don

I probably shouldn't mention this, but I heard two university students talking today about how a local bar is having a "dad music" night. What is dad music? Music that their fathers listen to, like AC/DC, The Who, and other classic rock artists..... :facepalm:
vreihen : Isn't youth wasted on the young?
 
   #44  

Uwe

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So long market players most certainly DON'T have a monopoly on foolishness- I believe!
Certainly not since about March of 2009, when Barry told us "It's a good time to buy stocks" only a few days before the accounting rules changed, which allowed the banking system to once again appear solvent. :rolleyes:
 
   #45  

DV52

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^^^^ Barry who - and why would anyone take financial advice from someone called "Barry"?:D
 
   #48  

DV52

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"Barry" is nickname for Barack Hussein Obama. And give that advice, he did.

Uwe: Far be it for a foreigner on the other side of the world to be disparaging to your elected President and getting back to Jack's comment, but isn't "Barry's" advice simply the pleadings of a market participant with a "long" position telling "short" market players that it's time to buy? Happens all the time!

Don
 
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DV52

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Don.......time to buy you say?
NOT! Unless puts
Jack: I NEVER give financial advice about investments - but my general philosophy is that an investor should NEVER take an open position in ANY trading market unless they are prepared to lose-it-all! If lose of stock is an issue, hedge your market exposure to the level at which you are comfortable with the risk (and be prepared to pay a premium for the insurance).

I can lend you my "magic Ouija board" - I have used it in the past with a modicum of success. But a far superior way to choose stock is to be better informed than other market participants about the forward price expectations!

If you believe (as many pundits are now predicting) that the Great White Hope (Mr T) will achieve his "lets make America great again" promise, then buying now is a good thing ("get-in before the hoarders" to use the Aussie vernacular). Of course if you believe that the reverse is true and that prices will tank in Mr T's administration, then you can always "put-on your shorts" - there's nothin' wrong with making money by betting against falling market prices. Finally if you expect that the combination of sharp increases in interest rates and the Fed's reapplication of financial brakes on the US economy (via Bond markets), then expect price volatility - which can still be profitable if you value risk!


Don
 
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DV52

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^^^^Jack : Bloody brilliant videos -nothing is more accurate or more telling than satire!!
 
   #56  

vreihen

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The Dow just broke through the 20K ceiling!!!!!!! Must be investors clamoring for concrete, rebar, barbed wire, and other wall-building materials stocks..... :D
 
   #57  

vreihen

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This is allegedly a photo of McDonald's (Macca's) automated kiosks in Australia, to compliment the high minimum wage:



I will leave it up to Don to fact-check this.....
 
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vreihen

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I just realized why a Big Mac is cheaper in Australia than in the USA. Macca's doesn't have the additional cost of shipping kangaroo meat half way around the world like McDonald's USA does..... :D
 
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DV52

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I will leave it up to Don to fact-check this.....[/QUOTE]

vreihen: I understand that Americans have a high national regard for MacDonald's restaurants, but at the risk of insulting a number of your compatriots (and perhaps you, as well), I do not! I can vividly remember the last (and only) time that I visited this august establishment - it was last century when I was still a practicing engineer working in country Victoria (about 3 hrs drive north of Melbourne). Money (my money) was scarce and I was looking for an inexpensive breakfast because the motel was asking an arm and a leg for a piece of toast and a cup of coffee. Drove past a Macca's sign advertising a MacMuffin - what can they possibly do to a muffin, I thought? Well I found the answer to my question - my experience at Macca's gave real meaning to those famous Aussie words "I live in a land down under where women glow and men [B]chunder[/B]". Needles-to-say (more Aussie vernacular), I have never eaten at Macca's again!

Is it fair to compare wages in the manner of your pictures - I don't know! When I was in America (long time ago), I couldn't get used to the need for patrons to leave a tip (never understood how the kitchen staff got their share of the waiter's tips). Does tipping happen at your Macca's ? I would much prefer that the advertised prices on the menu reflected the real fair price of the meal and staff received their rightful wage through the restaurant till. Better for everybody - including the tax system IMO! Perhaps in part, this explains some of the difference. Also, with our employment problems down here - I believe that Macca's only recruit staff with Phds these days - so they cost more!:D

[QUOTE="vreihen, post: 84532, member: 1720"]I just realized why a Big Mac is cheaper in Australia than in the USA. Macca's doesn't have the additional cost of shipping kangaroo meat half way around the world like McDonald's USA does..... :D[/QUOTE]

Ain't nothin' wrong with a roo-burger ( I'm not at all disturbed with the concept of eating both the creatures on our national emblem). I read over on the "advice on weaponry" thread (still get a chuckle from the title) that lots of RT employees enjoy the odd venison meal - well, a good roo steak (prepared and cooked properly) is as good as beef IMO. Kangaroo meat simply has an image problem!

Don
 
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   #60  

NZDubNurd

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I HAVE to go to Maccas sometimes... I have 3 small boys!

Here in NZ, we have auto kiosks AND staff, but the staff are generally very good - not generalised minumum wagers.

It's the clientele I avoid!

If it's a special occasion, we go if we have to, but try to talk the kids into decent food and a nice playground somewhere else ;-)
 
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