Oh my aching portfolio.

[1MOREMOD]

Originally Posted by ASBSECU E93

...or, you could invest in a Super Charger

Or engine build and gtr wide body kit true.

[sygazelle]

Originally Posted by 1MOREMOD

Should I become liquid and put it in the mattress

That sentence just sounds wrong.

[ASBSECU E93]

Originally Posted by 1MOREMOD

Or engine build and gtr wide body kit true.

[Fundguy1]

Originally Posted by fazman

https://en.m.wikipedia.org/wiki/High-frequency_trading

https://en.m.wikipedia.org/wiki/Front_running

i guess no one breaks the law then?

High frequency trading is legal but even though it accounts for a high number of trades it accounts for a low amount of actual price change. If it worked everyone would be doing it but it's just another trading strategy. It's done by individuals not institutions and you can and do loose as fast as you gain. It's therefore a non event and not an unfair advantage. It is however dangerous as computer trading in general can unbalance a market on the downside which is why protocols were put in yeas ago and are under review for this type of computer trading too.
Front running is extremely rare and more often than not prosecuted as it is illegal.

Sorry. Conspiracy theories like the are BS targeted at the ignorant to unfairly beat up on wall street and are a dime a dozen. Wall street is regulated more than any other industry including medical be 100% fair to everyone and favor no one.

[Fundguy1]

Originally Posted by MightyMouseTech

Interesting read:

https://www.superstation95.com/index.php/world/753

Not true but we are much closer to this thanks to the tripling of the national debt by the Obama administration. Serious cuts especially in entitlement spending and tax cuts to spur froth and therefore tax increases need to happen to stop this. Another 4 years without change and this becomes a much more possible reality.

[sirdaft1]

I never chime in on the markets, but being in the industry, I felt the need to share a few compelling thoughts (this is by no means a solicitation of investment advice, simply my opinion):
1) As of this week, U.S. Investor Sentiment is the lowest it's been in 8 years. The last time it was this low? March of 2009. Source
2) Volatility is perfectly normal; we forget that. Looking back on history, on average the market dips greater than 5% about 3.4 times per year. And we experience a correction of 10% or more at least once per year. Volatility is the price we pay for long term returns.
3) Don't confuse the screaming heads on tv (CNBC, FOX, etc) as being experts. Just because they yell does not make what they are saying true. They are there to generate ratings and sell ad space. That. Is. All. (notice the recent boom in Gold ads next time you watch )
4) Lastly, I remember a few years back a study was conducted to determine who had the best returns in their portfolios broken down by profession. The best profession for returns? Teachers. They don't tinker and simply remain steadfast in their long term savings. The worst? No surprise, Doctors. They wind up getting in their own way by tinkering too much.

The moral of the story, determine an objective savings/investment plan for yourself and stick to it for the long term.

[FogCityM3]

China is in the midst of attempting a "controlled" devaluation relative to the currency it soft pegs, the US dollar. Also buying US dollars only serves to increase the value of the dollar relative to all global currency which isn't something they want.

China has very large problems including constantly intervening in markets, lack of transparency and regulation in a corrupt financial system, lack of true property ownership (all land is leased for 100 yrs from the govt), an economy whose growth is heavily dependent upon infrastructure spending that is wasting resources, lack of a true global and free floating currency, large wealth and social imbalances, demographics that are aging (population will decline) and is dependent upon the US, Asian and European consumers to keep the export machine going.

Capital controls are in place to prevent an accelerating wave of money attempting to flee the country and investing in the US and Canada, including real estate in cities on the West coast and NY metro area.

Originally Posted by MightyMouseTech

Interesting read:

https://www.superstation95.com/index.php/world/753

[fazman]

Originally Posted by Fundguy1

High frequency trading is legal but even though it accounts for a high number of trades it accounts for a low amount of actual price change. If it worked everyone would be doing it but it's just another trading strategy. It's done by individuals not institutions and you can and do loose as fast as you gain. It's therefore a non event and not an unfair advantage. It is however dangerous as computer trading in general can unbalance a market on the downside which is why protocols were put in yeas ago and are under review for this type of computer trading too.
Front running is extremely rare and more often than not prosecuted as it is illegal.

Sorry. Conspiracy theories like the are BS targeted at the ignorant to unfairly beat up on wall street and are a dime a dozen. Wall street is regulated more than any other industry including medical be 100% fair to everyone and favor no one.

So those links have no correlation to Flash Crashes that were experienced before: https://en.m.wikipedia.org/wiki/Flash_crash

well i guess i'm just ignorant in your humble opinion (but at least i can prove my points with links) your just telling me your personal opinion with no support?

[Fundguy1]

Originally Posted by fazman

So those links have no correlation to Flash Crashes that were experienced before: https://en.m.wikipedia.org/wiki/Flash_crash

well i guess i'm just ignorant in your humble opinion (but at least i can prove my points with links) your just telling me your personal opinion with no support?

20 yrs in the financial industry talking to portfolio managers running hundreds of billions of assets, corner office advisors from every major firm daily, and talking to firm chief economists gives me a little more insight than the average bear.

[Fundguy1]

Originally Posted by FogCityM3

China is in the midst of attempting a "controlled" devaluation relative to the currency it soft pegs, the US dollar. Also buying US dollars only serves to increase the value of the dollar relative to all global currency which isn't something they want.

China has very large problems including constantly intervening in markets, lack of transparency and regulation in a corrupt financial system, lack of true property ownership (all land is leased for 100 yrs from the govt), an economy whose growth is heavily dependent upon infrastructure spending that is wasting resources, lack of a true global and free floating currency, large wealth and social imbalances, demographics that are aging (population will decline) and is dependent upon the US, Asian and European consumers to keep the export machine going.

Capital controls are in place to prevent an accelerating wave of money attempting to flee the country and investing in the US and Canada, including real estate in cities on the West coast and NY metro area.

Correct. China wants to strengthen our dollar because it owns trillions in US government bonds. Our dollar goes up, the value of those bonds goes up.

[Fundguy1]

Originally Posted by sirdaft1

I never chime in on the markets, but being in the industry, I felt the need to share a few compelling thoughts (this is by no means a solicitation of investment advice, simply my opinion):
1) As of this week, U.S. Investor Sentiment is the lowest it's been in 8 years. The last time it was this low? March of 2009. Source
2) Volatility is perfectly normal; we forget that. Looking back on history, on average the market dips greater than 5% about 3.4 times per year. And we experience a correction of 10% or more at least once per year. Volatility is the price we pay for long term returns.
3) Don't confuse the screaming heads on tv (CNBC, FOX, etc) as being experts. Just because they yell does not make what they are saying true. They are there to generate ratings and sell ad space. That. Is. All. (notice the recent boom in Gold ads next time you watch )
4) Lastly, I remember a few years back a study was conducted to determine who had the best returns in their portfolios broken down by profession. The best profession for returns? Teachers. They don't tinker and simply remain steadfast in their long term savings. The worst? No surprise, Doctors. They wind up getting in their own way by tinkering too much.

The moral of the story, determine an objective savings/investment plan for yourself and stick to it for the long term.

Excellent.

[fazman]

Originally Posted by Fundguy1

20 yrs in the financial industry talking to portfolio managers running hundreds of billions of assets, corner office advisors from every major firm daily, and talking to firm chief economists gives me a little more insight than the average bear.

If you have that much experience and are such a SME on the item at hand... can you provide me a link to some reputable source (other than you) that can prove your point?

I mean i can say the sky is orange because i say so and i have been roaming this rock for decades. Doesn't make what i am say true or false... just makes it my opinion.

[FogCityM3]

Actually, the USD dollar will be relatively strong as the US is still the "safe haven" investment regardless of what China does, which is why the dollar is very high relative to all other countries' currencies. China is actually selling its FX and foreign bond reserves, the majority of which are dollar denominated US treasuries, so it has been selling, not buying US treasuries. They don't care much about the absolute value of the US treasuries, as holding these and other foreign government bonds, they are able buy/sell in order to change their peg. The Yuan can devalue well on its own, without having to prop up value of the USD to do it, as I mentioned prior, they are facing some big short term and longer term structural issues.

Originally Posted by Fundguy1

Correct. China wants to strengthen our dollar because it owns trillions in US government bonds. Our dollar goes up, the value of those bonds goes up.

[Fundguy1]

Originally Posted by fazman

If you have that much experience and are such a SME on the item at hand... can you provide me a link to some reputable source (other than you) that can prove your point?

I mean i can say the sky is orange because i say so and i have been roaming this rock for decades. Doesn't make what i am say true or false... just makes it my opinion.

Which point? I had several. I'm sure you have Google too.

[Fundguy1]

Originally Posted by FogCityM3

Actually, the USD dollar will be relatively strong as the US is still the "safe haven" investment regardless of what China does, which is why the dollar is very high relative to all other countries' currencies. China is actually selling its FX and foreign bond reserves, the majority of which are dollar denominated US treasuries, so it has been selling, not buying US treasuries. They don't care much about the absolute value of the US treasuries, as holding these and other foreign government bonds, they are able buy/sell in order to change their peg. The Yuan can devalue well on its own, without having to prop up value of the USD to do it, as I mentioned prior, they are facing some big short term and longer term structural issues.

Yes and no. The value of the treasuries is US dollar based. If the US dollar increases in relative value to the yuan and other world currencies, they make money. So they do care about the exchange rate regardless if theyou hold the bond to term or sell prior.

[FogCityM3]

Right now they don't care about making money on their treasury holdings. Also don't understand your last point at all in terms of relevance to managing currency.

Many statements that you're making on multiple points are really not correct or misleading in this thread and I don't intend on arguing them--many here seem to be interested in explanations, and I've provided some on China and the markets hopefully in a way that is easy to understand for those not having financial backgrounds. I would be careful in doling out quasi-information or nebulous, cursory explanations on subject matters that are outside your bailiwick.

Originally Posted by Fundguy1

Yes and no. The value of the treasuries is US dollar based. If the US dollar increases in relative value to the yuan and other world currencies, they make money. So they do care about the exchange rate regardless if theyou hold the bond to term or sell prior.

[Fundguy1]

http://useconomy.about.com/od/worlde...t-to-China.htm

[3GFX]

Originally Posted by Fundguy1

http://useconomy.about.com/od/worlde...t-to-China.htm

Great read. Sums up some key factors for consideration.

I wonder how the Canadian market will be affected by the sale of the American debt by China. It would be nice to know just how linked the Canadian economy ties to the Chinese.

[M_Six]

Instant gratification is filling up today at $2.04 for 93. It was nice seeing a $30 fill-up from empty, but I kept thinking that these low gas prices are killing my retirement portfolio. Felt good now, the pain comes later.

[Fundguy1]

Originally Posted by M_Six

Instant gratification is filling up today at $2.04 for 93. It was nice seeing a $30 fill-up from empty, but I kept thinking that these low gas prices are killing my retirement portfolio. Felt good now, the pain comes later.

No worries unless you're retiring today or retired.

[M_Six]

Originally Posted by Fundguy1

No worries unless you're retiring today or retired.

Nah. Another 12 years at least. More if I still like my job and am healthy when that time comes.

[fazman]

Originally Posted by Fundguy1

Which point? I had several. I'm sure you have Google too.

yes sir i have google and yahoo as past employers, i also used them to provide proof of my points above. If you can't provide your own searches then all your points are opinion and not fact because you have no supporting sources (you can't site yourself as a source because you haven't proven you know what you are talking about yet). i'm sure janitors work at JPL for decades, doesn't make them rocket scientists and your not matt damon in the movie good will hunting...

read what you wrote to me, hit up your favorite search provider and get me your source of truth since you are a SME it should take you seconds to prove your points rather than me already having proven you wrong with sources. You don't have to do this... but just state it as your opinion and not fact (until you have PROOF).