Year to date, a number of hedge funds have gotten into trouble. There’s Melvin Capital, which was overly short shares of GameStop (GME). The short squeeze only ended when market makers shut off the ability of retail traders to buy more shares. More recently, the hedge fund Archegos caused several stocks to get cut in half as they received a margin call.
The issue isn’t being right or wrong in a trade… it’s the size. At a time when it’s cheap to borrow money and lever up, a small move against a highly leveraged position can blow up a fund and lead to some moves that resonate throughout the entire market. That’s the current paradox of liquidity. There’s no simple solution, only a few guidelines. Traders should avoid excess liquidity on any one position and look to limit the size of their portfolio in any one trade. That can substantially reduce the risk of a big personal loss and ensure that hedge fund blow ups don’t become theirs.
Now here’s the rest of the news:
How Archegos’ $20 Billion Margin Call Led to Banks’s Share Prices Tumbling –Yun Li, CNBC
Archegos built massive positions in stocks via swaps, a derivative investors trade over the counter or among themselves without public disclosure… [Read Here]
CBO: Our New Debt Projections Are Already Obsolete –Jerry Bowyer, National Review
So, how bad are things not counting the bad effects of a bill with a name that promises to rescue us? In the long-term, the CBO thinks things are going to be pretty bad. [Read Here]
Here’s How Biden’s Proposed Tax Increases Will Affect You –Ira Stoll, Reason
It seems some are just waking up to the size and scope of the president’s federal tax plan. For the highest earners, the federal marginal tax rate would rise to 55.8%… [Read Here]
April 02, 2020
For money managers, it’s a new start as we enter a new quarter. The bloodbath that was Q1 can be but a distant memory if you can deliver in future quarters. After all, it is a “what have you done for me lately” kind of business. As self-directed investors, it’s important to take a similar perspective. Sure, look at the past to improve in the future, but look forward!
The STORM is here!
Millions of people are struggling right now.
So many have lost their entire income and many others are struggling financially, so for many, the STORM is raining buckets right now.
Yesterday, I had a chat with my friend Russell about the launch of his new book, Traffic Secrets and, I can’t help but think it’s one of the biggest opportunities to snap people back to a place of prosperity.
Can it really be that simple? Yaass!
Russell and I chatted about the BEST kind of traffic on the planet … traffic that YOU OWN. His traffic Secret #5 is the #1 way to SAFEGUARD your business against any kind of Google slaps, FB snaps, or algorithm changes that come your way! AND … even pandemics!
I’ve been pouring over my FREE copy of Russell’s new book, “Traffic Secrets” and I’m amazed that the strategies in the book are truly evergreen. They are not subject to the whims of social platforms changes, etc. They are strategies that, if you will take the time to learn, will help you build a list of buyers and followers in record time … no matter what your traffic source of choice is.
Traffic Secrets is for you if you want to know:
- What’s the first step you need to take to generate traffic?
- Is all traffic created equal?
- How hard is it to get traffic?
- Do you have to pay for your traffic to be successful?
Feel free to forward this email to anyone you feel can beneﬁt from this too!
April 02, 2019
Andreas Ohrt is the author of “Money Making Secrets of Mind Power Masters.” Learn the secrets of the world’s most spiritual multi-millionaires.
FIVE SIMPLE WAYS TO TRICK YOUR MIND INTO ATTRACTING WEALTH
Yes, I said very simple. The ﬁve steps which follow are designed for the complete beginner. You can start today, right now, to attract more prosperity in your life. Here’s the 4th way to start immediately.
4. Be open to money-making opportunities. One thing that all self-made millionaires agree on is that there are opportunities everywhere, if we are just open to seeing them. You can prove this for yourself by looking at your own life. There are probably many times in your past which you think back to and wonder what might have happened if you had taken an opportunity at just the right time. Whether it’s obvious things like career opportunities you let slip by, investment opportunities you didn’t believe in, or less obvious opportunities like an idea you once had that is now making someone else rich, or an industry you could have joined before it became saturated.
If you are like most people, when you think of your past opportunities, you believe that you once had a chance but that opportunity is now gone. The difference between rich and poor people is that rich people realize that new opportunities are always all around us, all the time. You simply need to keep a look out for the opportunities, keep and open mind, and be prepared to take advantage when the opportunity arrives.
I’m sure you’ve heard the old adage that luck occurs when opportunity meets preparation. Well, it couldn’t be more true. If you expect to ﬁnd money-making opportunities in your life, and you prepare to take advantage of them when they come, you will be blessed with more incredible luck than you have ever experienced.
How to use this principle today: Get out a little notebook and write down all the money-making ideas you can think of. It doesn’t matter how stupid or outrageous the idea might seem, write it down anyway.
This does two things. First, you realize that there are plenty of money-making opportunities around you right now, as there always have been and always will be. Secondly, this exercise will stimulate your mind to see money-making opportunities where it might have ignored them in the past, and will help you practice to see opportunities in the future.
If you keep adding ideas to your notebook consistently, one day you will see an incredibly opportunity on your list which is perfect for you. Then go for it!
Please … I beg you to follow along tomorrow … to get every drop of this secret sauce.
April 02, 2018
The Cornerstone of Preventing Investment Worry
by Dr. David Eifrig editor, Retirement Millionaire
For those of you constantly fearing the next market crash, you need to remember one thing…
The U.S. stock market is the greatest wealth-creation tool in history.
It allows you to become a partial owner of thousands of proﬁtable businesses. When paired with the power of compounding, the market is what allows us to even consider saving for retirement.
Even so, people mostly complain about the market’s bad days and investments that fail to rise immediately.
Right now is one of those times…
The stock market took a wild ride recently. On February 5, the Dow lost nearly 1,200 points, about 4.6%. And Wall Street’s “fear gauge”— the CBOE Volatility Index (or “VIX”) — soared by more than 100%.
The VIX is often known as the “Fear Index” because it doesn’t measure the actual volatility of the stock market. Instead, it measures the volatility that Investors expect in the future by looking at how expensive options — which investors can use as protection — have gotten.
The recent spike is clear in the following chart…
Looking at days like these, you may conclude the market is scared. You might look at the balance in your retirement account and wonder if it could be 20% or 30% lower in a few months. ;-(
April 02, 2017
Here’s a great take on how one company used humor — as an April Fool’s joke — to deal with requests for taking a day off:
- There are 365 days per year available for work.
- There are 52 weeks per year in which you already have two days off per week, leaving 261 days available for work.
- Since you spend 16 hours each day away from work, you have used up 170 days, leaving only 91 days available.
- You spend 30 minutes each day on coffee breaks; that accounts for 23 days each year, leaving only 68 days available.
- With a one-hour lunch period each day, you have used up another 46 days, leaving only 22 days available for work.
- You normally spend two days per year on sick leave. This leaves you only 20 days available for work.
- We offer five holidays per year, so your available working time is down to 15 days.
- We generously give you 14 days of vacation per year which leaves one day available for work and no way are you going to take it.
Today’s Moral: Humor is more than funny business.