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Exactly. You gotta understand how the market prices in news.

Be sure to include the Sortino Ratio, which, in my opinion, is a better ratio because the Sharpe punishes you for an outstanding + month.

If there was ever a thread deserving of being moved to chit-chat....

Oh yeah. Pensions! The state of Illinois isn't even funding pensions for state workers at the moment. That's a huge problem down the road if it continues. My old man worked in the trades for 40+ years and receives a pension but he gets quarterly letters about the situation of the pension...

Bernanke's position that American's will feel a "wealth effect" from rising stock prices is laughable. A quick study of human psychology demonstrates that investors sell into falling markets and buy into rising markets. Many people were moving their 401(k) money to bond funds near the bottom...

I've been doing a lot of year end closing and tax prep for clients -- C corps, S corps, LP's, Sole Proprietors -- and very few have profits and if they do they are very thin. In many cases their employees have been slashed by 90%. Booming economy with record breaking growth. So how are all...

For every action there is an equal and opposite reaction. We're still waiting for the latter.

Surf's up for NFLX right now but they are using accounting trickery to generate their numbers. There's going to be a crushing down day some day down the road but for now enjoy the ride. This is AOL type accounting all over again.

Just face it. The markets are not free. To get around the PDT rule venture on over to the futures markets. No minimum account balances needed over there.....yet.

The best way to avoid current taxation is to set up Defined Benefit Plan, assuming you are self employed or have very few employees. Presently, the outflows upon retirement are as high as $195k and the inflows are determined actuarily. The set up and maintenance are expensive but you will save...

If you're in the market for a heart attack or diabetes!

This is a figment of your imagination. The Ben Bernank said there is no inflation so there is no inflation. MCD's can't possibly be raising prices or The Ben Bernank would have to acknowledge there is inflation. Therefore, MCD's is not raising prices.

The best book I ever read on value investing is "The Warren Buffett Way," by Robert Hagstrom. I use the 5 tenants to this day and I can say this book has made me a lot of money. http://www.amazon.com/Warren-Buffett-Way-Second/dp/0471743674/ref=sr_1_1?s=books&ie=UTF8&qid=1295922587&sr=1-1

The Fed currently holds about $5T of US debt on its balance sheet at a rate of let's say 4%. Assuming the Fed does actually return 95% of the interest they collect to the treasury they stand to make $10B from the US Taxpayer. $5T x .04 x .05 = $10B. It's probably even more than that. And to...

The entire US monetary system is a fallacy created out of thin air. The "accounting change" isn't the least bit surprising. The fallacy must go on.

The money the Fed creates is debt. That is not a form of wealth. The theory that the US is the wealthiest country in the world is nothing more than an illusion.

The only stop loss I use is a disaster stop loss. I refuse to let the market dictate when and how I lose money. That's my job. To use this method you have to have a very high degree of discipline.

1. This isn't going to happen because if China crushes the US economy they are crushing their own economy, and 2. Assuming this did happen all the Fed has to do is buy them. Problem solved.

I was thinking more along the lines about the guy who went short those puts :eek:

The way things are going the Federal Reserve may soon be in 2nd place. There is an estimated $6T sitting in 401(k)'s and IRA's. I wonder how many times this has come up among boardroom discussions. EDIT: Damn, and I wrote this before I read the link above. Yes! We're fucked.