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And btw, the DVM is no financial engineering or some bogus 'model'. Its a simple NPV calculation with adjustments for growth rates in dividends

Right now one can earn 7.9% on corporate junk bonds(JNK), what kind of PE ratio one would have happy to pay if he wanted to be compensated with a bigger return in order to take equity market risk? A bigger return like, lets say 10%? Assuming NGDP grows at a 4% rate into infinity(This is...

Maybe he means hedge fund trading

No liquidity. It will cost a fortune to roll over the contracts. BZF hurts my buying power and cash liquidity(I'm paying interest to IB currently), I still own some but if I don't see major flaws with the ATR adjusted basket I might liquidate a lot of it

I have been solving my brazilian real hedging issues with an ATR adjusted hedge basket. What I did was short USDAUD USDNZD USDCAD USDNOK in a 1.5 ratio. That is, for every 1 USD I have in an american broker, I short 1.5 USDs and buy the currencies from above I arrived at the 1.5 ratio by...

yes, I meant $42,437. I mistyped

FV = PV(1+i)^n 60,000 = x(1 + 0,08)^4.5 x = $49,498.50 adding to the PV of the other cashflows results in the 2nd reply answer I gave

Isn't this formula essentially using simple interest instead of compound interest for that 6 month period?

Lottery can be emotionally rewarding for some people. This more than makes up the fact that the expectancy is negative

Seems that the result was slightly off. $439,892.19 seems correct I wasn't using compound interest for the 6 month odd period. The hp12c weirdly has simple interest as default

I arrived at the number $439,855. First calculated the NPV of the first 4 payments. Then calculated the last one alone with a "n" of 4.5 using an HP12c, then added them I'm not 100% this is correct

Not sure what you mean. I was referring to the return of being long that index

What is your opinion on the likely long-term return of a index of low priced stocks that the bonds indicate have a decent chance of going bankrupt?

The thing is, if these investors were counting on a 10x return if the company did not go bankrupt they would only have to be right 9% of the time to have a positive expectation trade What I'm saying is that when all the headlines are bad and people are bearish on the stock usually the equity...

The thing is, this 'lotto bias'(people wanting to make a lot by using a little) can be countered by fact that during panics and large declines, usually, the equity premium rises(VIX spikes historically have lead to market beating returns in the short-term) So to me, its not entirely clear...

It seems that on IB TWS you can modify multiple orders but I haven't found a way to create them on a single order window. As a result I'm forced to manually create many orders then use the 'modify multiple orders', this is inefficient

I'm surprised how the EUR is holding up well against other european currencies(NOK SEK). I'd think when the Bund stops being a haven capital would start fleeing the EUR zone into other places, I'd expect this to happen soon. If it doesn't I might have to dump these currencies entirely

Are you short this stock?

m22au, I have some questions about your strategy of shorting very low priced stocks down to $0 -Have you have experiences of stocks doubling or tripling before going bust?What do you do when the stock goes significantly against you -Do you use stops in these positions? -These stocks...

Its going to be very interesting to see Corzine getting grilled in Congress. "There american people wants to know where is the money"