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If I understand correctly Optiver participated in an OTC derivatives market where contracts are traded of which value is based on the day's settlement price (here refered to as TAS, never heard that term before). Apparently they found a way to profit consistently from those contracts by buying...

The biggest problem that faces South Africa is brain drain. A friend at Universiteit Stellenbosch estimates that about 80% of students emigrate after obtaining their degree. The reason for this brain drain can be largely attributed to racial quotas that make it hard for whites to obtain...

You shouldn't be looking at the price correction to estimate if you're getting a bargain. Instead you should look at what it would cost to replace the house and buy at a 30% discount.

Gabon, Botswana and Namibia. Although Botswana has a high percentage of HIV cases amongst its populace.

A friend from South Africa visited Zimbabwe recently. According to him the defacto currency in the country is batteries or cigarettes. AA batteries could be exchanged for everything, cigarettes are best for bribes. The country's economy functions pretty much like a prison economy.

How does a person borrow physical yen through IB?

Reality is exempt from efficient market theory, but alas, you have a point when it comes to friction costs from excessive leverage and fees. Most hedgefund investor would do better if they just bought dividend paying bluechips and use the yield to buy OTM puts.

I would use it to renegotiate your commissions. You could also try and take it to the arbitrage commission, but I don't know if it's worth the money. Perhaps someone else could reflect some light on that.

It's the only thing the Feds can do. It's painful, but not necessarily irrational. High inflation will rebalance the ratio of debt to wages and tangible assets. The alternative would be to shackle the United States to a mountain of debt owned by the creditor nations.

CNBC will be a sports channel next year. The gig's up if they can't announce new highs.

This is good advice, especially if you select stocks that are able to raise prices in an inflationary environment to maintain profit margin. Companies with strong brand names or intellectual assets will do well. It shouldn't be too hard to invest the proceeds of the short sale into a...

The Federal Reserve is buying treasuries on the open market.

A good article that touches the subject: Airlines and the canine features of unprofitable industries Financial Times 27 September 2005 The efficient industry hypothesis suggests that if an industry looks particularly attractive, or unattractive, then companies will enter, or leave...

They could sell call options on their own stock and buy themselves out with the premium.

The golden rule of investing: Never buy what you don't understand and never buy airlines. High capital requirements and low margins make for bi-annual trips to bankruptcy court.

You nailed it. Personally, I compose a universe of stocks that I think are undervalued and select those that I think have the best ratio of risk to reward. I adapt my criteria to ensure that my universe remains a certain size and make sure that the stocks I pick all possess a catalyst. Ensuring...

The margin of safety should be enough to compensate the investor for the potential risk that a stock will never reach their assessed intrinsic value. In that case, the stock isn't hold forever but is sold off because eventually some other deal comes along. I don't consider it to be a forcast...

The intrinsic value of that bet is $50,000. Making that bet while risking $1 is both extremely risk averse, as well as extremely rewarding. However, risking $49,999 would not be.

Well, a value investor could begin scaling in when his requirements for a margin of safety have been met. He could also choose to buy all at once, as he would rationally expect the stock's price to contract towards its intrinsic value rather than continue its decline. A principle of caution is...

The rational for holding further is that there is an expectation that share price and intrinsic value will continue to contract. The reasoning is thus that a stock trading at 50% of intrinsic value will increase more than a stock trading at 99% of intrinsic value, as well as providing a...