2009 February « Enterprising Investor Forum

Housing Concerns & Unemployment Thursday, February 26, 2009

Posted by ei-forum in Miscellaneous.
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useconomy Housing and Unemployment remain major concerns and despite the efforts that are being made, investors should prepare for a long recovery period.

It will be very difficult for us to see some normality returning to the financial markets unless we manage to see the stabilization of mortgage related troubles. Unfortunately, the housing situation looks very fragile: not only are we facing excess supply but a worsening of the economic situation with a higher threat of unemployment is hanging over us. Furthermore, due to the deterioration in the overall economy, it looks like the problem is now spreading from residential to commercial real-estate.

In terms of unemployment, investors should keep a close eye on what is going on with the Auto industry. If one of the auto manufacturers ends up in bankruptcy, this could really have tremendous consequences for the overall unemployment rate, sparking a chain reaction that could see us moving incredibly close to a double digit unemployment rate…

We are afraid that we continue to move in unchartered waters….

Will we nationalize? Tuesday, February 24, 2009

Posted by ei-forum in Miscellaneous.
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Investors will have to brace for another difficult week. At this point, it seems clear that something will be announced – as far as Citi is concerned – as early as today or tomorrow.

In any case, the debate is ongoing and is causing quite a stir….

We believe that, apart from people who are following a fixed dollar cost averaging calendar, investors should stay on the sidelines until we get some more clarity.

At this present moment, markets are being driven by fear, anxiety, forced liquidations and traders…. this is a market for professional traders and the Enterprising Investor should only take positions after careful consideration and with a long-term horizon.

CNBC: Santelli – Rant of the Year! Friday, February 20, 2009

Posted by ei-forum in Rants.
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This is a classic, actually better than Cramer at his best!

Is spending over 70 million to help people who aren’t paying their mortgage the way to go? Should we bail out people who shouldn’t have taken these mortgages out in the first place and what about the people that are actually struggling BUT making their payments? Are we going to end up like Cubans?…

Rick Santelli probably had the courage to say what’s on a lot of people’s minds…. enjoy:

The sad things is that he actually manages to capture the overall mood in the States… highlighting the severe strain the whole country is facing…

Free Courses Thursday, February 19, 2009

Posted by ei-forum in Miscellaneous.
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books We recently came across an interesting site that offers a whole host of free video tutorials/courses on a very broad range of topics.

What we found interest, apart from the vast amount of material covered, is that it doesn’t only focus on trading but also offers overviews on topics such as ‘money flows’, ‘interest rates’, ‘central banks’, ‘forex’, apart from the traditional fundamental and technical analysis.

The site is called InformedTrades.com and you can access the free course section: here.

Enjoy and let us know what you think!

Traders Guns & Money: S. Das Tuesday, February 17, 2009

Posted by ei-forum in Book Reviews.
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How could you ‘not want’ to read a book with this title! Satyajit Das gives us yet another must read for your bookshelf. The knowns and unknowns in the dazzling world of derivatives…

This book is really interesting and fascinating, not only for the actual financial explanations but because it is a bit of a hybrid between a text-book, novel and memoir – all thanks to over 25 years experience in the financial markets.

The book offers a cynical and comical explanation of the culture, games and deceptions played out in trading rooms around the world – usually with other people’s money… The author takes the reader through a detailed account of how derivatives where born, how they evolved and especially, how they were/are used to fool investors – usually due to their complex nature.

This is a true insider’s account that will prove interesting and insightful to anyone and not only to people directly involved in the financial markets.

Enjoy!