Tag: stock market

The Blue River’s “significant other” on Black Monday 1987

In Colorado fly fishing circles, the name Jones is oft mentioned when discussing a conspicuously maintained section of the lower Blue River.

Lower Blue River via satellite

Actually one of Colorado’s gold medal waters, this section of the Blue is accessible only by raft. The optimum flow conditions for a safe float are a closely guarded secret, and you best be a very experienced (and well insured) oarsman if you try. Reason? The river is littered with huge protruding boulders and man-made weirs, and you can’t stop and/or set foot in the stream bed as it’s almost all private property. By the way, those weirs were built to keep the river’s inhabitants happy, and the occasionally catches of some of the larger [cough, choke, cough, cough] denizens forced locals to nickname the stretch Jurassic Park.

I’ve heard this significant portion of one of the finest trout waters imaginable called the Dow Jones property, but it has nothing to do with the Wall Street-esque publisher. No, the Jones property is owned by one Paul Tudor Jones, an avid outdoorsman who also happens to be a pretty [cough, choke, cough, cough] wealthy hedge fund manager.

A PBS special on Mr. Jones, aired in the late 80’s, was on YouTube for a bit – it’s since been taken down due to a copyright claim, but I did get a chance to see the first clip which ended just before Black Monday, 1987. Anyone want to venture a guess as to how Mr. Jones and his fund fared that fateful day?

Pakistan stock market institutes “No Loss Sale Rule”

They are calling it a ‘floor’:

Pakistan set a floor for stock prices on the benchmark exchange, moving to halt a plunge that has wiped out $36.9 billion of market value since April.

Securities can trade within their daily limit of 5 percent “but not below the floor-price level” of yesterday’s close, the exchange said on its Web site, without giving details.

Stocks can no longer go down – it’s the “No Loss Sale Rule“, and not so cleverly disguised. Imagine the order imbalance that would occur in a real marketplace!

Who listens to analysts?

googchart1.jpgObviously a lot of people do, as do a lot of people’s brokers, who the people, in turn, listen to. And round and round we go.

From eWeek: The stock that bullish analysts on Wall Street said earlier this month was headed soon for $600 turned tail and fell below $400 as the shares suffered their worst day and week of trading since the Web search leader went public in August, 2004.

In just a week, poof! There goes $20 billion.

Don’t bother crying for help

I was having dinner a few weeks back with an old friend, and the subject turned to the US economic situation. I’ve known this guy for roughly two decades and trust him like a brother; he is a very smart character who doesn’t pull punches. I was inclined to listen – the fact that he analyzes high-yield bonds for a big investment bank’s private client group certainly didn’t hurt his cause either.

I’ve believed that indebtedness at every level of our society, from federal, state and local government, right down to consumers’ credit cards, home equity lines and first mortgages, has reached epic proportions. But when this fellow said he thought we were headed for another depression, my sceptical nature reared its ugly head. I have a predilection for looking at the downside, as I started my career in restructuring situations, but I relish that downside for its opportunity and I also know that nobody likes a doomsayer. It wasn’t until I read about our nation’s savings rate hitting zero that I began to rethink his claim.
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The Bulls are buying SPAM

It is all about the money. And of course, the distribution. We know phishers chase the cold hard cash, so why shouldn’t their slightly less sneaking pure-spam brethren?

You have mortgages, pharma and porn as the norm, but what was once a big deal coming across the fax, is growing again in popularity across the web. Yes, spam-based stock scams are again on the rise.

Could this be a new leading indicator that the stock market is headed north once again?