Category Archive: Finance, No picture
E Tesla’s Cobalt Blues; Growth Fallacies And Supply Chain Risque Majeure
<< Read More: Tesla’s Cobalt Blues; Spin, Fake News Or Deception? In its Q2-18 shareholder letter, Tesla predicted that beginning in Q3-18 it will, absent a severe force majeure or recession, achieve sustained quarterly profits with continued rapid growth. In Tesla’s Q2-18 conference call, Elon Musk predicted profits and positive cash-flow for every future quarter, unless […]
Buying Call Options – Defining Risk, Optimizing Time Value And Realizing Gains
Introduction: Options can provide an alternative approach to the traditional buy and hold strategy. Buying call options can add value to one’s portfolio via leveraging a small amount of cash while defining risk with unlimited upside potential. Simply put, buying a call option is bullish in nature as the buyer is positioning the trade with […]
Nifty Hits Fresh Record High; Sensex Up Over 200 Points
After opening the day marginally higher, stock markets in India witnessed buying interest and went on to scale their record-high levels. Sectoral indices are trading on a positive note with stocks in the energy sector and consumer durables sector witnessing maximum buying interest. The BSE Sensex is trading up 202 points (up 0.5%). The NSE Nifty hit a new record high of 11,446 and is […]
The Fantasy Of “Balanced Returns” Funding Retirement
Consider how a “balanced portfolio” yielding “balanced returns” worked out for middle-class retirees in Venezuela. The fantasy that a “balanced portfolio” yielding “balanced returns” will fund a stable retirement for decades to come is widely accepted as a sure thing: inflation will stay near-zero essentially forever, assets such as stocks and bonds will continue yielding hefty […]
USDCAD Daily Analysis – Wednesday, August 8
USDCAD broke above 1.3039 resistance. Further rally is still possible and next target would be at 1.3096 key resistance, a breakout of this level would indicate that the downside movement from 1.3289 had completed at 1.2961 already, then next target would be at 1.3150 area. Support is at 1.2961, only a breakdown below this level […]
Top 5 Charts Of The Week – Wednesday, August 8
This week: Extremes in speculative futures positioning in stocks vs bonds USD becoming a crowded trade and what this means for the outlook EM risk pricing relief rally drivers and why it’s likely to be short-lived Active vs passive fund flows and the new zero fee passive fund from Fidelity Japanese government bond yields going to […]
Consumer Credit Up 3.1%, Revolving Credit Unexpectedly Declines
After a blistering May, revolving credit fell 0.2% in June as overall credit continued its upward march. Bloomberg reports Consumer Credit in U.S. Rose Less Than Estimated in June. I prefer to go straight to the source. The Fed G.19 Report shows consumer credit rose 3.1% in June, with nonrevolving credit up 4.4% and revolving credit down 0.2%. […]
The Door Is Open
During the decade of the seventies, there was an opening. The Bretton Woods system had largely failed in 1960, but gold exchange lingered onward until August of 1971. Long before President Nixon acted in defaulting on US obligations, however, global currency liquidity had increasingly been supplied through other means. Those “other” means was an offshore […]
Crude Oil, Gold Prices Echo Sentiment-Driven Swings In US Dollar
Crude oil and gold prices echoed price swings in the US Dollar yesterday. Both commodities edged up in the first half of the day as the greenback corrected lower after the prior session’s gains. That offered a de-facto lift to assets denominated in terms of the benchmark currency on global markets. The move reversed course as the US […]
AUDUSD Daily Analysis – Wednesday, August 8
AUDUSD’s bounce from 0.7348 extended to as high as 0.7439. Further rise is still possible in a couple of days and next target would be at 0.7483 resistance. Near-term support is at the rising trend line on the 4-hour chart, only a clear break below the trend line support could bring the price back towards […]
