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Markets are constantly in a state of uncertainty and flux and money is make by discounting the obvious and betting on the unexpected. - George Soros

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Entries for the ‘Investment Opinions’ Category

U.S. Venture Investment Drops 7% to $7.37 Billion in 3Q08

SAN FRANCISCO and NEW YORK, Oct. 18 /PRNewswire/ — As the economy
weakened during the third quarter, venture capitalists continued to rein in
investments in U.S.-based companies, according to the Quarterly U.S.
Venture Capital Report from Dow Jones VentureSource
(http://www.venturecapital.dowjones.com). The third quarter of 2008 saw $7.37
billion in venture capital invested into 583 deals, 7% less than the $7.94
billion [...]

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Investors’ Real Fear: A Socialist Tsunami

By INVESTOR’S BUSINESS DAILY | Posted Friday, October 10, 2008 4:20 PM PT
The Crash: “Why has the market dropped so much?” everyone asks. What is it about the specter of our first socialist president and the end of capitalism as we know it that they don’t understand?
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Read More: Economy | Business & [...]

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“After all, the Fed is giving away money for free.”

The Fed rate is 700% higher than Treasuries of the same term. The world’s wealth pounds Treasury yields down because they assess economic investment to be a worse deal. Thus, no one will ever borrow money above the market-driven Treasury rate.
The whole problem is the Fed is wantonly draining the economy of money with murderous [...]

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“Buying in a bear market? That’s what Warren Buffett is doing. “

By my count, just on his advertised buys and ownership, he has lost about 1/3rd of his net worth in less than 6 months.
“I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds.” “But fears regarding the long-term prosperity of the [...]

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Officials: Financial crisis can lead to violence; Authorities are urging people to get help before they take desperate steps

Oct. 17: Millions of Americans don’t fall into the regular categories of race provided on paperwork. NBC’s Vivek Kemp is half-Indian and half-Caucasian. In this video diary, he talks about his experiences growing up in a multicultural family.
updated 7:23 p.m. ET, Mon., Oct. 13, 2008
An out-of-work money manager in California loses a fortune and [...]

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Don’t follow Mr. Buffett’s lead for now

I would strongly agree that Mr. Buffet is the most intellegent stock-investor in the US history; however, I have to say that not many of us, common investors, could really “copy & paste”
his strategy.
(my) Reasons by some challenging questions:
1. Could one still hold your shares for 1-2 years, even if its price
drops 50% [...]

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Merrill Lynch Won’t Discuss Lehman Brothers Exposure

NEW YORK (Dow Jones)–Merrill Lynch & Co. (MER) dodged analyst questions
regarding Lehman Brothers Holdings Inc.’s (LEHMQ) bankruptcy exposure.
On Thursday’s third-quarter earnings conference call, the firm stated it does not
discuss specific numbers in terms of counterparty exposure.
Lehman Brothers, which filed for bankruptcy last month, has affected many Wall
Street banks that had significant counterparty exposure to Lehman.
The [...]

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It is time to buy Zhongpin, Inc. (HOGS)

2008: there are 1.3 billion Chinese
Their favorite food PORK
2080 there are 2.0 billion Chinese
Their favaorite food PORK
Who is the most succesful pork conglomerate in China?
Zhongpin, Inc. (HOGS) (HOGS: 11.93 -1.57%)
On Oct 10 2008 they (again) raised estimates for 2008
Sales to be $ 550-$570 millions from $ 500 milion
Profits to be up to $ 1.17 a [...]

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UPDATE: Justice Dept. Faces Tough Questions Over Tobacco Case

WASHINGTON (Dow Jones)–U.S. Justice Department lawyers came under heavy
questioning Tuesday by a three-judge panel as the tobacco industry appealed a
ruling that it had tried to hide the dangers of smoking from the public.
In the latest round of a landmark case begun by the government, judges from the
U.S. Court of Appeals for the District of Columbia [...]

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Gold & Silver Mining Sector M&A To Increase - Blackmont

SINGAPORE (Dow Jones)–Canadian brokerage Blackmont Capital says the gold and
silver mining sectors are set for a busy period of merger and acquisition
activity as larger mining companies buy their junior peers.
“While the volatile markets and global financial crisis are deservedly dominating
discussions these days, we believe the stage is set for an unprecedented increase
in merger and acquisition [...]

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Spending up to 700 billion, not infusing 700 billion

Inflation rises as the dollar weakens.
Dollar strength is always relative to currencies, commodities or
derivatives it is traded with.
When an injection of currency (USD) is placed into a market, it
dilutes the pre-existing currency.
That dilution is inflationary.
When a currency is stripped from the market, then the value is raised
making the move accretive for the underlying currency.
We [...]

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In either way, Gold price will soar

Gold will be the only thing that makes you money in the long term no matter what at this point - lets take a moment to understand why:
Scenario 1: The plan is passed, inflation goes through the roof in the short term as we delay the inevitable collapse that has been brought about by dependence [...]

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The estimated $700 billion bailout cost is laughable, the real number can go up to between 1500-2000B

The final battle is underway, for USGovt bailout of practically the entire US banking and mortgage system. Its ancillary businesses like insurance are next. The Credit Default Swap segment represents nitroglycerine soon to be brought under the crippled USGovt aegis. The mega bailout plan puts Wall Street firms first in line to benefit. The plan [...]

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Proposed $700 Billion Bailout Is Too Little, Too Late to End Debt Crisis; Too Much, Too Soon for U.S. Bond Markets

JUPITER, FL, September 24, 2008 — The proposal before Congress for a $700 billion financial industry bailout will not only fail to end the massive U.S. debt crisis but could actually aggravate the crisis by driving up interest rates, according to a white paper submitted to Congress and banking regulators today by Weiss Research, Inc. [...]

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Gold Miners:An unprecedented wave of merger and acquisition activity

There will be an unprecedented wave of merger and acquisition activity in the gold and silver space that will see junior miners and development companies victimized by factors beyond their control and snatched up by senior and mid-tier producers making use of their healthy cash flows and stable balance sheets, according to a new report [...]

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