A CONTRARIAN IDEA ABOUT DEFICITS

Imagine you are running a small business. Although sales are slowly growing, competition is driving down your margins. Your employees are getting squeezed by rising living expenses. Not only that, they are worried about the fact they are living longer...

CHINA DOWNGRADE - BUY THE NEWS?

Many traders are getting their knickers in a knot about yesterday’s Chinese downgrade by Moody’s. Suddenly, the Kyle Bass Chinese implosion scenario is on everyone’s lips. The downgrade has fanned the flames that were already burning from the recent sell...

ROMANCE IS FOR LOSERS

A few readers have asked me to tell more stories about trading. They encouraged me to share more of my experiences throughout the years. After giving it some thought, I decided that instead of taking the easy road and recounting...

A BEARISH POSITIVE CARRY TRADE

The Eurostoxx outperformance of the past month has garnered a lot of attention, but there is another similar trade many investors are missing. Not only that, but it has a positive carry, something that is sorely lacking in this day...

OTC DERIVATIVE NIGHTMARE FIZZLES

There’s no denying OTC derivatives expanded at a frightening pace during the first decade of the new century. From a little more than $100 trillion in 2000, the total notional amount of OTC derivatives outstanding spiked to over $600 trillion...