Tag Archive for shares

EU Deal on Greek Bonds – History Repeating

Do you remember the days before the collapse of the Lehman Brothers bank in 2008? Well, the history is repeating – only this time is spoken in more languages and has a different continent behind.
Today EU decided to wipe out 50% of the Greece debt – in effect the private bondholders have agreed with a 50% cut on their holdings of the Greece debt. The agreement, struck after nearly 11 hours of talks at a summit of eurozone leaders, includes a new €130bn bail-out of Greece by the European Union and the International Monetary Fund.
This situation is identical with the resolution of the mortgage crisis’s conclusion 3 years ago, when the US government agreed that the banks are too big to fail. A similar pattern will occur probably with the European banks with a large exposure to the Greece bonds – they will need to be re-capitalized, governments will bail those out on taxpayer’s money, and 2 years later we will find out that they made record profits from another type of transactions and they re-purchased the government shares. Nothing really new here, I guess.
The only problem remains the externality generated by this bailout. How many of these costs will be supported by the European taxpayer? What will be the consequences for the Eurozone economic growth? How long will now the recovery take? Nobody knows, but I have this feeling that the costs will not be small. We’lll see…

Book Review – “Trade the Trader” by Quint Tatro

Trade the trader book review by www.doitinvest.comOne more book about trading various financial assets… Shouldn’t the world be tired about these?

I guess not. Trading is a financial knowledge field which advances at a blistering pace, not only technologically, but also behaviorally. Take for example the way the introduction of the Ipad has changed the trading behavior of the masses – now you can research, plan and place your orders online, straight from your morning coffee table. Isn’t this brave new world wonderful?

Yes it is my friends. But it is also dramatically different from one year ago. Think about it a little – how many traders are now online compared with 5 years ago? (this means increased competition, right?) How many tools are you using today compared with one year previously? How did the playing field changed?

Read more

Weekly Update On Our Doitinvest Investment Portfolio no.1 – U.S. Blue Chip Stocks (3)

As we have adopted fundamentally long positions in our US blue chip shares portfolio, there are no changes in the no of shares owned as of today. However, the market seemed to come back a little bit this week and we extended our gains modestly (but certainly, as $8,000 is no little gain I’d say -0.8% per week measn 40% in one year, an investment yield hard to obtain otherwise than by doing a lot of short selling these days).

So the summary of our US portfolio looks as follows: Read more

Update On Our Doitinvest Investment Portfolio no.1 – U.S. Blue Chip Stocks

djia-april-2009-14th-overall-us-market-evolutionWell, two weeks have passed since we started our blue chip shares portfolio. If you remember, we created a portfolio of very liquid shares two weeks ago, with the intention of tracking its performance and of comparing it with the investments performance of the DJIA index.

Well, in two weeks the things are quite good. The initial value of our investments portfolio was $1,06 million. In these 13 days we had no bad luck – in fact we had capital gains (since we did not made any transactions with the shares) of $60,000. This corresponds to an investment yield of 6% before any trading commissions and taxes, or roughly to 4% after those. Read more

Shares update – Dow Jones on the rise on September 11

 It seems that Sept 11, 2008 was not so bad a day for shares, after all. U.S. stocks rose on Thursday as a report that major U.S. investment bank Lehman Brothers is shopping itself to possible owners, including Bank of America, drove a last-minute increase in financial shares. Read more