Day

June 11, 2012
This is an interesting article on the risk on/risk off mentality that has existed in the markets since 2008.  There is a big difference between and investing and trading and I think this mentality pertains to trading.  Benjamin Graham developed the concept of “Mr. Market” and the primary premise is that over the short term...
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I’m amazed at the lack of common sense shown by politicians and regulators regarding the JPM trading loss.  This is a company that has a stellar track record and it is absurd to think that they will never lose money when trading.  Company’s make mistakes and can’t just always print out money.  Wouldn’t that be...
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Southern Company CEO Tom Fanning offers some interesting perspectives on long term energy solutions.  He believes that Natural Gas consumption will rise by 50% and over the long term this will likely lead to price increases that might make coal viable once again.  In addition there is the risk the environmental concerns over “fracking” could...
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This article outlines some of the upside opportunity in Spain.  Their problems primarily reside in the banking and private sectors but this weekends bank recapitalization should help things considerably.  It will be interesting to see how credit markets react to the deal but my gut feeling is that it will be positive.  I think there...
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Telefonica (TEF) announced that they are selling half their stake in China Unicom for $1.4 billion.  They still own 5% in the company moving forward.  I think this is a positive mood as it allows the company to reduce their debt load.  Telefonica has some valuable minority interests but unfortunately it is not a really...
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This article insinuates that because of bailout of Spanish banks, the bond market is likely to punish the countries sovereign debt.  I might end up looking foolish but I think this deal is a huge positive for Spanish bonds.  By eliminating this massive problem which has plagued Spain, the focus will be on boosting growth...
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General Electric is considering selling off non-core businesses in GE Capital to reduce their reliance on the division’s earnings.  I don’t really believe that shrinking GE Capital is the best decision for GE shareholders.  It is more important that GE Capital increases its deposit base to shore up longer term funding sources.  The main reason...
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