The former entails trading recommendations by email or text, pre-market briefings and previews of scheduled corporate and economic events, while the latter involves all of that along with face-to-face meetings, bespoke investment solutions and more comprehensive trading analysis and recommendations. In terms of executing its strategy, SAM has just opened an office on Fitzwilliam Square in Dublin 2, but meeting with Sommerville, one gets the clear sense that he will be hitting the ground running.
In addition to being fully authorised and regulated by the UK Financial Services Authority, and overseen by the Central Bank of Ireland for conduct of business rules, SAM has also put together a comprehensive portfolio of services that it will be offering to clients. All it needs now are clients, but being fronted by a household name and offering a suite of products to suit all financial tastes, few would spread-bet against SAM making inroads among the Irish investor community.
These certainly are significant pull factors. Another significant differentiator for IG is its technology platform. Recognising that, for clients, reliability and promptness are absolutely critical, the group has invested heavily in its IT infrastructure. An indication of the return IG has gotten from this investment is that This is no small achievement, given that the system is currently handling around five million trades each month.
In these volatile times, having a platform that allows clients exploit trading opportunities in such a timely and efficient manner is a key strength. The platform is also designed to handle client orders across a number of different channels, from PCs to laptops through to mobile devices.
In addition, small trade sizes to begin with are key, allowing clients to ride out the swings and volatility that are inherent in financial markets. In terms of what the future holds for IG, the group has identified four key objectives: i To maintain its leading position in its home market; ii To continue to expand into new markets — IG has offices across 15 countries; iii Ensure continued innovation and technological advancement; and iv To maintain excellent customer service.
With a track record going back four decades, IG looks odds-on to achieve these goals. Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies.
It is mandatory to procure user consent prior to running these cookies on your website. Traders wanting to go long of Twitter, as soon as it flashes up on their screens, should think a bit further back, though. Facebook plunged by one-half in the wake of its listing and LinkedIn shed more than one-third following its debut in And, despite their massive gains since then, these web-giants are prone to some giant reversals along the way.
Big booms — like that of recent months — have reliably been followed by nasty pullbacks. However, a case for investing in the social media giant can nowadays be made on fundamental grounds too. A real business is fast developing here. By next year, analysts reckon 60 per cent of its ad revenue may come from this source.
The excitement sent the stock gapping higher in August. There is clearly quite some conviction behind the buying, going by the heavy traded volumes. The burst upwards has left the stock at overbought levels on the weekly timeframe, the most stretched it has ever been during its short lifetime. At some point, a big snapback of 15 to 20 per cent is likely, but it is important to wait for confirmation this is underway before shorting. In the meantime, buying bounces off the first of those lines would make sense.
Connecting with new professional contacts via LinkedIn is the 21st century equivalent of swapping business cards. It is fast becoming the preferred forum for those looking for job openings or industry gossip. LinkedIn has clearly taken some virtual pages out of Facebook, since it now offers a much slicker, more polished experience than the rather clunky interface of last year.
Much the same is true of the uptrend in its stock price, which since June especially has been a thing of beauty, made up of strong thrusting advances interspersed with fairly gentle pullbacks. While it remains rising so strong, the only logical trade is to buy bounces from around the day EMA. But what about when the inevitable pullback comes?
My backtesting shows the most profitable strategy to date would have been to short as the day EMA crossed below the day EMA. Covering shorts as the price then closed back through the day EMA would have produce sixwinners and three losers. Netflix The late, great Steve Jobs once mocked the idea that consumers would pay monthly for the same music, rather than just buying it once. People seem more than happy to pay a subscription for ongoing access to an online library of songs and movies, rather than buying to own them forever.
More than 36 million punters around the world have now signed up to Netflix, mostly in the US. While its overall expansion has been impressive, it can be a tough show to keep up all the time, as a failure to beat analyst expectations for new members in July proved.
My instinct would be to exploit another such shakeout to build a position trade here. A rally off the EMA on the weekly chart has often been a great moment to enter long positions to fresh record highs. OK, just shut up rambling Robbie, and give us a few tips.
You just skim the long articles to see if there happens to be a good tip or two? Yeah, me too. Especially once the authors start to use long weird words like stochastics. Who needs them? You can thank me later! Then you can save time and not read anything else I wrote. More time for porn!
And who can blame them? No longer. Right, job done. Whoo hoo! If you do, well, as ever, buyer beware. Sometimes AIM shares get suspended out of the blue and never return even if everything looked rosy. They can take even experienced investors by surprise. And please watch the small AIM oil companies!
Anything with oil in it gets you going. Because it will find oil and you will become a millionaire overnight from a small stake. Okay, you might get one winner, but betcha you get five losers along with it. Some tiny oil shares even tell you how dangerous they are by their very name. How much more could they spell out how risky it was? It launched on the market at 50p and soon went to 10p. A right old trap. There are plenty of others. Go for companies that make or design or sell real things. And here are five of those which I think could do very well.
That will help it move south. The market in home drinking continues to grow much to the chagrin of the health police and pub groups! This is the kind of share that could easily double and could well do even better than that if its technology pays off. It also has a decent cash pile and an alliance with Caterpillar — it helps with new interaction with machines, such as eye recognition — possibly the company of the future?
Definitely worth a punt in my opinion. Looks like a well run machine to me and its current rating could be on the cheap side. However, of course a million shares only set me back around six grand!! Mobile payments is the next big thing to me and Monitise has many decent contracts in place. I suspect within the next year or two someone will buy it. Monitise is already a massive company so no worries about illiquidity etc.
I hope by sticking these away in the ISA, and being patient, that they will bring big rewards. If you buy any of these and make money you can thank me. If you lose, then simply complain to the editor of this magazine. Definitely his fault! Okay, click the button, you can turn the page over now, see you next month. Looks a tremendous company to buy into. Even before the Federal Reserve surprised markets by not introducing its taper, it looked like bubble trouble was about to make a comeback.
Bonds, gold, London prime real estate and tech stocks currently have all suffered this disease. Just look at what has happened to gold and bonds since My call now is that the next on this list will be tech stocks, especially those in the US.
The floatation of micro blogging group Twitter could well prove to be the high water mark for this particular market. In other words, investors and traders lose their rational minds and these markets have a nasty habit of powering higher, even if the fundamentals are terrible. However, this could be a costly mistake. I say this in spite of the seemingly irresistible gains of this year which have so far failed to regain the heights of early The current set up involves severe RSI oscillator divergence.
During May, this oscillator peaked at 75, a clear signal the market was very over-bought. It has not been able to crack through the 75 barrier. The usual rule is to attack such peaks as they eventually bring down a stock market like a house of cards. Recent Significant News September 20 — Priceline. During the late s dot-com bubble, Priceline was known for its name-your-own-price option.
Between April and October , a period when many dot-com companies failed, Priceline lost 97 percent of its market value. Internally it made technical changes to the way it runs IPO auctions. Then the exchange suffered a three-hour outage in August. Among the 20 best-performing stocks this year, 14 are nontechnology companies.
In fact, eight are consumer discretionary, five are biotech and one belongs to consumer staples. So, in a new era where innovation is highly correlated to stock performance, will the new kids on the block continue to outperform? Truman was president. The benchmark gauge for U. Valuations last climbed this fast in the final year of the s technology bubble, just before the index began a 49 percent tumble. The rally that started in March has now outlasted the average gain since , the data shows — Bloomberg.
Facebook is back above its IPO peak and, even in the aftermath of the latest Apple iPhone launch, it appears somewhat churlish to attempt to get in the way of this runaway locomotive. However, as I have described above on the technicals, there is serious divergence at play. This suggests a near-term peak is in place and, in terms of sentiment, it is difficult to imagine how there could be much more in the way of positive momentum.
While few could deny that a lot of transformational change has occurred in the tech space since the start of the decade, my view behind this sell call for the NASDAQ is that, at 13 year highs, the good news is already priced in. Indeed, even those who deny there is any similarity between the NASDAQ of today and that of the turn of the century would have to admit the balance of market prices is now skewed more towards risk than reward. It is quite feasible that we will see this ratio fall to a more rational 17 over the next 12 months, but in the short term this market looks overcooked.
Alpesh Patel Alpesh Patel is the author of 16 investment books, runs his own FSA regulated asset management firm from London, formerly presented his own show on Bloomberg TV for 3 years and has had over columns published in the Financial Times. Longer term With the quiet and kind of dull summer period behind us, markets are picking up momentum as the next few months are packed with significant financial developments that will have substantial impact on global markets.
However, recent economic data led them not to act. Receding consumer demand and weakening job data were both cited as reasons for this, however my view is that the taper is still likely to happen. Every time the discussion turns towards the taper, the US dollar falls hard. In spite of this, I think it will not be long before the market wakes up to the reality that the US recovery is gathering pace.
At this point, I expect investors to drive up the greenback once they realise things are not as bad as some headlines suggest. I treat every dip as an excellent opportunity to buy equities. At the time of going to press, she was still attempting to form a coalition, but there is little doubt she will achieve this.
During the election, Merkel had an easy job persuading Germans she was protecting their interests within the heart of Europe. Now the election is out of the way, I anticipate a resumption of German efforts to safeguard the euro. With mounting problems in Greece and Portugal, there will need to be some action soon. It is clear that the Japanese are giving it their best effort to drag their economy out of recession and to do that the yen needs to decline even more, so exports can pick up momentum.
I remain bearish on the yen for now since it still has a long way to go lower. Emerging markets have fallen off, with poorer than expected growth and also a fear that US tapering could mean even lower emerging market growth. But a month to 12 month holding is asking for trouble, as things turn around too quickly there, no trends really form.
This week has seen some surprising moves in the game of monetary chess being played by central bankers around the globe. The minutes showed that the MPC had no intention of deploying further QE to stimulate the economy, suggesting that they believe the recovery of UK PLC is underway and it is strong enough to be self-sustaining. The alternative read here, however, is that the US economic recovery is seen as too fragile to continue unaided, in which case US interest rates are unlikely to rise in the near future and the greenback weakened accordingly.
For Canada, given it shares a border and a free trade agreement with the USA, then inevitably there are consequences from a weaker US dollar policy for its economy. Of course, we in the UK have also imported some economic influence from Canada in the shape of our new chief Central Banker Mark Carney, who successfully steered the Canucks through the aftermath of the Credit Crunch, without any major disasters. The Canadian recession was shallower and shorter lived than in other major western economies.
The hope is that Mr Carney can be as successful in steering the UK and sterling. The UK has historically been a major trading partner of Canada, for instance visitors from the UK are one of their largest sources of revenues from tourism and the Canadians in turn have provided significant inward investment into the UK.
We can do just that by looking at the three charts set out below. For our last chart, I thought we should look at how GBP is performing against the other commonwealth commodity currency, the Australian. What I think is interesting here is the divergence seen since the first few days of September as sterling continued to strengthen against the Canadian dollar while the trade against the Aussie lost momentum. That suggests to me that the move against the Canadian is independent and can continue.
In fact the range that day was a cent inside at either end of that seen on Wednesday. A close above here, to finish the week, would be a healthy start. Marc Faber has one of the more non-conformist, contrarian and sometimes inconvenient voices in the investment industry. A brilliant student of economics, obtaining his PhD at 24, Marc Faber worked for several years in different financial companies until he established himself in the advisory and investment business.
In many of his television appearances he has been a very vocal critic of current monetary policy and has repeatedly warned how it is causing all manner of systemic problems. His views on investment are quite simple. Early Years Faber was born in in Zurich, Switzerland. He studied in Geneva, where he raced for the Swiss national ski team, but then was admitted to the University of Zurich to study economics.
At the young age of 24 he obtained a PhD degree in economics magna cum laude. He worked in several locations including New York, Zurich and Hong Kong, and stayed with the company until it was sold to Merrill Lynch in This was a famous Wall Street investment bank whose rise to prominence was due to its involvement in the then growing junk bond market.
For some time, Drexel was the largest investment bank in the U. In many of his television appearances he has been a very vocal critic of current monetary policy. Its primary focus was on contrarian strategies.
Today, the company manages funds for private wealthy clients. Faber is also a personal advisor to several investment funds, specialising in emerging and frontier markets. He has often accurately predicted market downturns and crashes, which has earned him the nickname Doctor Doom. Unlike politicians, who tend to be excessively optimistic about them, Faber is a pragmatist who reacts against fast market rises and too much central bank intervention.
In , he warned about the U. Faber has been a long-term bear about the American economy. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer it will go to India. If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala.
If we purchase a good car it will go to Germany. If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US.
Since then, he has been one of the most vocal critics of Federal Reserve policy. He believes money printing will inevitably lead to a period of hyperinflation and that the central bank is creating nowhere-to-hide bubbles. Faber is sure current loose monetary policies can only end one way; a systemic crash. While analysing , Faber has identified several echoes from His view is that this year is so similar to that fateful year, that he expects the market to drop 20pc by year end.
The rise in shares has not been combined with a similar rise in earnings, which strongly suggests the market is now overbought. To compound this problem, decreasing interest rates and massive monetization are no longer likely to act as market drivers. The required yield on a year Treasury is above 2. When the Fed eventually starts its taper, things will get worse for financial markets. Just look at the table opposite. The opportunity in this is the likelihood gold miners will eventually correct to regain a degree of parity with the price of their product.
And while the rest of world buys into overvalued markets, we are quietly seizing the opportunity to buy gold and gold mining stocks. This rise has been pretty indiscriminate, and makes me very nervous — too many people are making too much money too quickly and easily, and that can lead to valuations becoming stretched. Momentum runs away with itself, and inevitably it all ends with a nasty correction. What does this mean? I think it means we have to look at every position in our portfolio and decide whether it remains good value or not.
That is why in the Titan Small Caps Fund, which uses an innovative spread betting wrapper to provide tax-free profits, the fund is currently not using any gearing at all. Not even two months into the management, the Fund has had its first takeover bid, for Fiberweb, which we spotted at 76p in early August after good interim results. We can move fast and caught a decent re-rating driven by good results, a positive outlook, strong Balance Sheet, and of course a takeover approach.
The agreed takeover was confirmed at the time of writing at p plus the 1. The timing may have been lucky for us, but the stock idea was good, and value is value — sooner or later it is re-rated and it was a prime example of the mantras we use in our approach — value will always win out. The forward PER is still only 9. CAP ticked those boxes for us, so were happy to give it a whirl as a smaller, more speculative position in the portfolio at 8p.
One should top-slice into strength on more speculative shares, in our opinion, and which we have duly done and so are now happy to run the rest with some of the profit already banked — always a good position to be in. Conclusion we can all appear to be geniuses in a bull market.
However, the clever bit is making money in a flat or declining market, something we are positioned for and expect to unfold with this bull market now in its 5th year and increasing in momentum in recent months — this is typical of late stage bull runs. Our key message now is to be careful. There has been a big sector-wide move up in small caps, some of which was deserved, but some of which has got really out of hand.
People were paying crazy money for hyped-up story stocks which almost all ended in failure. This is a time to be very selective, to bank some or all profits on shares which are now looking fully priced, and sit on the sidelines with a pot of cash ready to deploy when the next market panic throws some bargains at you! Remember that brokers often lag behind reality with their forecasts in an economic recovery, so if you look hard there are still some opportunities out there for companies which are beating broker expectations.
Alternatively, you could let us sort the wheat from the chaff for you, and consider outsourcing your small caps to the Titan Small Caps Fund? Ensure you fully understand the risks and seek independent advice if necessary. No tax is payable on any gains made, or allowable for either income or capital gains tax against losses incurred. Authorised and regulated by the FCA. Registration No - And who at the time was the architect of the campaign to stop Tarzan in his tracks?
None other than my old mate Alan Johnson, then general secretary of the Communication Workers Union, and later to become Labour home secretary. Somehow though, like the NHS, it miraculously limbers on and works like some well-oiled old steam engine, even though no one is left around who knows how to fix it. Founded in the year , the Royal Mail makes Facebook and Twitter look like mere amoebas spawning on a drawing board albeit one of those white board electronic ones.
And many would say that is exactly their problem: that unlike the delivery of thousands of real parcels for real money, the social media gods have yet to prove themselves commercially. Or maybe Royal Mail staff will be allowed to vote by Twitter, which coincidentally announced it was flogging itself off around the same time.
Honestly, what a business. When I had a parcel delivered recently, it of course arrived just in that perfect slot when I popped out for ten minutes. I have to say I will celebrate for a different reason when the Royal Mail is finally privatised. And what an ironic contrast when within hours of the Royal Mail announcement, Twitter decided to announce its own sell-off, via a tweet, of course. The form filling, the waiting for your allocation if at all and then you have little idea what the business is really worth until the float.
Bigger profits can be had from other, more familiar trades. Things have changed a lot since the s, when privatisations — and just plain share buying for ordinary people — were new and exciting, especially when they contrasted so well in Thatcherite circles with the seizure of industry, during the highly unionised previous decade.
These days, how are we supposed to get excited about buying shares in the Royal Mail when we have thousands of investment opportunities at our fingertips, potentially more lucrative, less risky and just more exciting? At least with the Royal Mail we can understand how it could be profitable, especially with the hangover from its monopoly days. It is impossible to envisage ever living without it again. Sending a letter or receiving thermal socks via Royal Mail is not; at the moment.
Dramatic changes in the latter were enabled by the introduction of the networked computer and changed the world of investing forever. The emergence of the electronic crowd The dotcom crash spawned a new generation of tools for web-enabled investors. The first generation of social media services were bulletin boards.
These started out as general meeting points for investors. However, they soon assumed identities of their own, as sub groups of members started posting on specific subjects or stocks. People posted anonymously using a handle rather than their own names, an innovation which has generally not brought out the best in people!
As with so much in cyberspace, bulletin boards were for the most part unregulated. Some may have been moderated after a fashion, but many were not. What started out as a venue for free exchange of information and ideas soon become a forum for people to talk their own book or, worse, one where they would try and talk you into taking on their book, via pump and dump schemes. Over time, in what has become a familiar pattern of development on the internet, structure was brought to the bulletin board scene as corporate websites such as Yahoo!
Finance and Interactive Investor sought to channel investor enthusiasm through their services. These days, bulletin boards have become increasingly outmoded, but they remain popular with certain groups of investors. In spite of their popularity, these bulletin boards should still be treated with a good degree of circumspection, especially those of the micro-cap stocks. Instant messaging a product in search of a purpose After bulletin boards, the next major evolution in social communications and trading came with the emergence of instant messaging systems which were introduced by Microsoft, AOL, Yahoo and others at the end of the s during the Internet Bubble.
These rapidly gained acceptance in the wider community as groups of individuals sort to associate with each other regardless of geographic location. Initially developed as a possible replacement for email, instant messaging services were seen as something of an interesting curiosity at best, or an irritating distraction at worst by most mainstream businesses. For the first time, clients and their brokers had a level playing field as far as market access and technology were concerned and they were in instantaneous contact with each other as well.
This was a quantum leap forward and was probably the first genuine workable example of social trading, regardless of location. Sadly, this innovative platform fell foul of the collapse of broker Man Financial and has yet to be resurrected, if indeed it ever will be. The service allowed users to post short text based messages of characters or less and for those messages to be shared among any parties who had registered an interest in reading them.
Tweets, as these messages came to be known, were succinct and to the point and offered more immediacy than blogging or email. By July of , Twitter was launched and, although not an immediate success, it would go on to gain a strong following among celebrities and those in the media. In turn, this prompted interest from a wider audience and over seven years Twitter has acquired more than million registered users and has processed some billion tweets.
This figure is, of course, growing every day by more than million messages. Financial information providers such as Bloomberg and Reuters were quick to recognise the opportunity that instant messaging provided. To this day, Bloomberg messenger remains the cornerstone of the Bloomberg business and the principal reason that most professional traders have the Bloomberg system on their desk; although many may not like to admit that, given the cost of the terminal each month.
The originators of online CFD trading for individuals also offered their customers the ability to participate in daily moderated chat sessions, within which ideas, thoughts and reactions could be exchanged. These comments were often from people that were directly involved or were close to them.
With the advent of the smartphone, which added the ability to attach web links, images and video to messages, Twitter became synonymous with major news events. It also created the idea of the citizen journalist. As Twitter grew in popularity, the service, its potential and its open source nature was noticed by other interested parties.
Notable among these were Howard Lindzon and Soren Macbeth who founded Stocktwits, a parallel but separate service to Twitter dedicated to the stock market. Many thousands of active investors and market commentators now post their thoughts, latest trades and strategy throughout the day on Twitter.
Stocktwits itself now has over , members and is seen as the leading proving ground or nursery for aspiring traders and market commentators. The service is divided into individual streams and most listed stocks will have their own page, where comments on that particular ticker symbol are displayed see the graphic below. Metrics, such as price, message volume and post sentiment, are charted on the right hand side of the page. Drinking directly from the tap The use of specific identifiers within Tweets and the open source nature of the messaging platform meant that Twitter was not just a communication service in the way that instant messaging, email or text had been.
Instead its structured nature, archived history and message meta data make it ideal for data mining. The phrase hosepipe is used to describe the stream of messages emanating from Twitter and over the last few years many bright minds have been thinking about how to extract value and information from that flow.
That research has led to the emergence of a number of sentiment indicators and even investment funds which seek to capitalise on the early detection of changes of investor sentiment or the discovery of new and trending topics of discussion. Researchers are also looking at levels of brand engagement to establish the popularity of brands, counting, for instance, the number of discreet tweets about the purchase of the new iPhone. This is just the tip of the iceberg for investors as far as applications of social media and its associated intelligence are concerned.
If you are not already an active Twitter user, but are active in the market, then now is the time to get to grips with this incredibly powerful investment tool of the 21st century. Only speculate with money you can afford to lose as you may lose more than your original deposit and be required to make further payments.
Spread betting may not be suitable for all customers, so ensure you fully understand the risks involved and seek independent advice if necessary. Terms and conditions apply. ProSpreads Limited is a company registered in Gibraltar, registered number The date is December 10, , one of those grey and cold Tuesdays. Although it is early in the morning, already there is a lot of hustle and bustle in the streets as the Muscovites prepare for yet another busy day.
No one suspects that such a Tuesday will be different from all the others in recent weeks, and yet, events in Moscow are about to change the world Just one month earlier, an international war had unfolded in Syria. They were seeking to retaliate against the Government of Syria for using chemical weapons on its own people. While the Americans seemed happy with the outcome, the Europeans were a little more apprehensive and hesitant as no widespread agreement was achieved at the UN.
The Russians and the Chinese were of course angry at the United States, as their veto power at the UN had been distorted. Once more it seems that Uncle Sam had imposed his political will on others and be damned the consequences.
No one but the four other countries that make up the rest of the BRICS acronym took him seriously however. Everything appeared rosy over the border in the US with the main stock index heading north by some 16pc over the year. That was certainly not the case with Brazil and Russia where stock markets had lost 15pc of their value during Two hours into the summit, President Putin felt it was time to move the meeting in the direction of his original intents.
He highlighted the role of an international currency, the need for monetary stability, and the strength of BRICS in the commodities market. With the United States committed to managing its huge debt pile through dollar debasement, printing money out of thin air in essence, the summit realised the need to find a real alternative to the dollar in international trade — a new currency backed by a hard asset — gold, and eventually silver.
A currency which would be created under Swiss law and the new central bank would be headquartered outside the BRICS to give it more credibility, eventually in either Zurich or London. Russia and Brazil were about to unleash what could be a nuclear bomb into the global financial system but, crucially, they needed the support of all other BRICS to succeed. While preparing for the summit, Dilma Rousseff and Vladimir Putin had stealthily engaged in some backdoor agreements, in particular beginning to buy ever dwindling gold stocks in the international markets.
The real issue was how to enforce the use of WGC? Russia imposed that natural gas exports be paid in the newly created currency. This would guarantee a strong WGC circulation in Europe. At the same time, China substituted the yuan trade zone with its trading partners with a new WGC trade zone whilst also demanding that other trading partners use the new currency.
The formal announcement at the end of the summit shocked the world, with many being incredulous about it. Gold trading on COMEX was suspended as the exchange did not have sufficient physical gold to meet delivery demands. The nuclear bomb had been launched, and its implications were just about to be felt around the world While COMEX tried to impose a variety of restrictions in gold trading, especially through daily price change limits, it was, by now, too late Gold was already trading in international markets in WGC.
International lenders panicked out of Treasury bonds, dollar and linked interest rates shot up, and the Federal Reserve saw the money supply shrink. A period of hyperinflation had been set in motion in the mighty America. The collapse of the dollar was assured and it was the US economy this time that was plunged into a deep crisis; a crisis that would take a generation to resolve and for her people to come through. A new era of sound money had begun!
In my previous piece, in the last edition of SpreadBet Magazine, I warned of the dangerous path the worlds major central banks are on in deliberately stoking inflation. There is no doubt this is their favoured plan du jour.
Although this is an incredibly complicated topic, there are some relatively straightforward explanations. Here is my attempt at presenting them. The looming spectre of inflation has been an ever-present danger in the minds of many investors since The unprecedented expansion of the monetary base is behind this. First the Federal Reserve stepped in to avert financial calamity, with its bailouts and initial QE programme.
Then the other major central banks quickly followed suit and we all moved into a new era of the centrally-managed financial system. Failure was no longer an option and reform barely an afterthought. With good reason, excess inflation has left deep scars on the popular psyche.
Even armed with a rudimentary knowledge of history, we know that, if left unchecked, inflation has wrought widespread upheaval on societies, it has inflicted poverty on whole generations, has brought down governments and caused wars. The reality of what has happened since has been far different from what many were led to expect. If anything, central planners have been far more fearful of deflationary forces and have responded accordingly.
The conditions really are that extreme! The background In hindsight, the signs of financial stress became apparent during the second half of Nearly everybody missed these. We all know what happened over the course of , as one stricken financial institution after another went the way of the dodo.
This culminated in the Fed initiating the first of its extraordinary monetary measures and ultimately quadrupling the size of its balance sheet, shown below:. Prior to the start of QE1 can you spot the spike?! The bond purchasing programmes have been the essence of QE. Through these, the Fed sought to save the financial system by providing banks with a limitless supply of liquidity.
The Fed provided the liquidity, by making direct purchases of a vast selection of mortgage backed securities MBSs and US Government bonds, at market rates. It paid for these purchases by creating money. There are far too many questions about the legitimacy of this approach to deal with in an article of this size not least the fact the Federal Reserve has essentially monetised federal deficit spending , but the results of these efforts have been wide-ranging.
Although I often use this shorthand description myself, to describe the complex QE operation, it is in fact slightly misleading, if taken at face value. Now this might sound like much of the same thing, but the distinction between money in circulation and bank reserves is crucial and explains succinctly why official inflation has remained benign, while financial markets have gone into overdrive.
Consider the difference between a seed and a plant. Each is distinct, yet one begets the other. So it is with bank reserves and money in circulation. Bank reserves are the seeds from which money in circulation grows. The fractional reserve banking system is the mechanism through which money enters circulation. The introduction of this coma-inducing term might well encourage you to put this article down, but, as with much of the financial services industry, a fairly simple method is dressed up in an excruciating name.
For the system to work, central banks issue commercial banks with reserves. The commercial banks then issue loans to customers, who in turn usually deposit these loans back with the banks, who in turn can then lend against these new deposits.
Central banks seek to control this multiplier effect by regulating the issuance of new loans, by placing capital requirements on the issuing banks. In other words, the issuing banks are only able to lend against a fraction of their reserves.
The psychological boost these QE-provided reserves has given has been immense and no doubt has been a critical contributory factor in the bull market we are currently in. As is often the case in life, the danger is that too much of a good thing could prove to be ruinous. If you have money in the markets, then the chart to the right is one you really should be keeping an eye on.
This chart captures the current amount of excess reserves commercial banks currently hold at the Fed. Excess reserves are the reserves held above the capital requirements. What is most telling about these figures is that they provide us with a simple headline for what happened to the QE money. Thanks to the secretive nature of the banking industry and the complexity of derivative markets, there is no way of knowing the true extent of losses incurred by American banks as a result of the collapse of subprime and a weak economy.
Additionally, the opaque nature of reporting and complex corporate structures within the sector means that attempting to calculate the impact of new capital requirements is as challenging. However, the figures above are indisputable; they are simple and they are staggering.
In the case of benchmarking a monkey vs a fund manager, if a monkey picks a few stocks, then of course as they have created a concentrated portfolio and a bit of luck on their side, then they have a much better chance of outperforming a group of managers who have annual volatility caps and much more diverse portfolios. So if you pick enough monkeys and enough restricted managers then the monkey that significantly outperforms will make the headlines. Comparing them is foolish unless you are comparing apples to apples instead of comparing apples with pears.
Are you also suggesting that a monkey with a decent trading method or plan could do better than most of us? The first edition which we put out a few weeks ago highlights aspects of the market that retail traders overlook as part of their basic educational requirements to become a competent trader. The problem is for a monkey to have the same odds as a retail trader in making money, they would simply have to apply the same methods as retail traders.
They are also given information that brokers with conflicts of interest want them to base their trading decisions on because it fills their pockets and not the pockets of the retail trader. We have found at the institute over the last few years that if retail traders properly understand the infrastructure of the financial markets and learn how to operate within this infrastructure i.
The infrastructure education that we teach is focussed on understanding how brokers and the retail trading environment operate and do business. The education highlights where retail traders are positioned in the market, how the conflicts of interest in the market really work against their chances of success i.
This is so people feel like they are trading in the correct way, when in fact they are trading in the opposite way to the way they should be in order to ensure sustainable success. The point here is simple. This is because they concentrate on all the wrong things. In the last three years we have presented to over 8, people as a company. One of the very clear trends we have seen is that retail traders who attend free broker and trading educator seminars get overwhelmed by trading information because they are essentially lambs to the slaughter.
The brokers and the trading educators who have a structural conflict of interest - which naturally works against the objectives of the retail trader - are fully aware of this and they purposely deliver the wrong information to retail traders. This is because brokers are incentivised by commission, spread, liquidity conflict of interests taking the other side of your trades and financing conflicts of interests making a turn on the leverage they provide to you from the wholesale supplier of the financing.
The vast majority of brokers and trading educators do not trade themselves. This is something you can simply do yourselves. This then discourages retail traders and they understandably lose confidence because they unnecessarily lose money. This not only puts people off structuring their trading in the same way professionals do after they have had their first or second encounter with these morons, but it also puts people off trading altogether.
This is a sad fact. People end up with the wrong impression of what trading is all about and they end up missing out on a life skill that if they managed to learn properly would pay them for the rest of their lives. Is there the risk that signing up to what you are offering may be abandoned half way due to the degree of difficulty? In what way do you address the discipline issue? However, after teaching on the road for two years prior to going global and launching our Professional Trading Masterclass PTM Video Series, the delivery of all the key information, education and content has been perfected so that everyone can understand how to implement it to become successful in the long term.
We get feedback from our students regularly, almost on a daily basis. All of them have understood the key content in the video series when it comes to risk management and discipline. As part of the thirty online videos within the Professional Trading Masterclass PTM , the four psychology videos modules are literally a game changer in terms of teaching retail traders how to manage their trades and portfolios with discipline for long term success. Is this something you can be taught without having money on the line and having been bloodied in battle?
Anton: I get asked this question a lot and the answer is it that it genuinely CAN be taught. However, there is a big caveat to the success in it being taught. What we have found in the last few years is that most of our successful students that complete our education, and go on to make money in the markets consistently, tend to have done something else in their lives that they have been successful at. This can literally be anything.
The trend is very obvious from where we sit. This is usually the beginning of a big change in their mentality and inflection point in their earnings and in their life in general. Zak: Are there times when you have to tell someone they are never going to be a successful trader? How do you cushion the blow?
Anton: Of course! Trading and portfolio management is not for everyone. It can be taught to the vast majority by responsible people with the expertise to deliver the key information and messages in a format that the vast majority understand. However, a lot of people have a perception of trading that differs greatly from the reality.
Unfortunately, a lot of people then do not want to follow through and apply themselves to make money consistently. The skills learnt are life changing and are permanent. Therefore, at some point these people will make back the value of their education multiple times over, not just in trading and portfolio management but in all other areas of their lives. Anton: I would say this is a very accurate analysis. The vast majority of brokers and trading educators are simply sales people incentivised by commissions and targets.
They themselves are guilty of not even knowing that the information they are relaying is never going to make their retail trader clients any money. The information asymmetry caveat emptor that exists is the major problem. It literally is the blind leading the blind. The only reason they chase commission and targets is because they have been set this infrastructure by management and because it is legal. What retail traders should be doing is totally avoiding them and doing literally the opposite of everything they teach and recommend in terms of trading education.
Zak: Are there actually any good points to being a retail trader? Or is the only good retail trader one who has been able to turn professional? Anton: There is a massive plus point to being a retail trader. A retail trader that makes money! You can simply be a person that wants to use their own money to make money and build incremental wealth consistently over the long term. We have many guys in the Institute with this objective. In fact, those with the objective of wanting to become a professional trader are in the minority.
Zak: Financing costs, variable spreads, slippage, fast markets, platforms going down. These are all part of the game in the financial markets, and in fact most of these problems are much worse now than they were five years ago. Are most of us already aware that this particular casino table is tilted against us? Are the rewards for those trading correctly easily able to outweigh such issues, so that only those who do not know what they are doing are really affected by them?
The brokers salespeople have been told to relay particular information, hit certain targets and they probably have personal circumstances that dictate that they have to earn a certain amount of money each month. For example, if a broker or a trading educator has a mortgage or has to pay their rent pretty much all people , the vast majority of them only care about making it through each month.
So they will tell you anything to make sure they get commissions to cover their living expenses. The sales people are definitely exploited by their management. Anton: As alluded to earlier, the vast majority of retail traders are totally unaware of how the infrastructure works in the retail trader market and how retail brokers work. This is one of the main causes of the problem and keeps the status quo maintained for the retail brokers.
They have no interest in people knowing how all of these issues affect performance and how it creates a situation in which from the very outset, the retail trader without this knowledge has the odds stacked against them. The best thing about these parameters is that if you know what to do as a trader you can minimise their impact and stack the odds in your favour.
Typically, this involves doing everything in the opposite way to the way the brokers want you to behave. When you become consistently profitable by doing this, the sad fact is that you then become worthless to the broker because you are a nuisance to them.
People that make money cost the broker money. They then start to make life difficult for you. I will give you a recent example. One particular brokerage company that the Institute used to clear a lot of trades through attempted to charge us as a significant amount of money annually because the majority of Institute Traders that had trading accounts with them were making money. They had decided that the Institute was not profitable for them and put up a financial barrier for us to either jump or be locked out.
All of the Institute traders closed their accounts and moved their money to another brokerage company. The conclusion is that if you are profitable you are more than likely going to be exposed to the brokers making life difficult for you, but you have to use your common sense, be strong and stand firm. You will more than likely then witness the brokerage company come begging to keep your business. Primarily financial. Our education first and foremost has a transaction value.
Anyone in the world can buy it, take that information away and implement it with pretty much any brokerage company in the world. However, if people want to then come into the Institute of Trading and Portfolio Management and trade under our structure, the PTM Video Series is the pre-requisite for doing so. Students must take the course and pass the exam.
They are then eligible to join our community. We are in the process of building a very large profitable community of retail traders and we currently have over traders. Who knows where the tipping point is? We know that if we build this with integrity then the financial rewards and the possibilities for changing the market are literally limitless. Although the Nasdaq has staged a partial recovery of late, the April sell-off was certainly a shot across the bow for technology investors.
Here at t1ps, we think it is unlikely that anything on the lines of the original dot. Nevertheless, we believe that those looking to gain exposure to the sector should take a highly selective approach, not least because simply buying into the latest hot floatation has proved to be a strategy with mixed results at best.
With this in mind, we believe that investors willing to accept the inherent risks associated with small cap companies should consider the junior markets as an alternative means of gaining exposure to the myriad of exciting investment themes within the technology sector today. Small technology stocks are generally less well researched and, in many cases, undervalued relative to their larger peers. As such, they also provide the opportunity for better gains.
Overleaf are three companies we currently like the look of. The first company we highlight is cyber security specialist Accumuli ACM , which is enjoying decent growth on the back of wider macro trends. This should provide a growing market for Accumuli, which is developing its offering as a one-stop shop for businesses looking for tailored solutions to meet the threat from cyber crime.
At the same time as driving growth through acquisitions, the firm is generating enough cash to pay shareholders a meaningful and growing dividend. As an acquisitive company, we believe the main risks to be related to the execution and integration of acquisitions, along with meeting market forecasts.
IQE has been left out of the recent bull market for technology stocks, largely as a result of a softening in the smartphone market, which has traditionally been the major outlet for its semiconductor wafer supply business. However, several recent acquisitions have transformed the business, and IQE now boasts market-leading positions in the growth areas of wireless, advanced solar CPV , Power Semiconductors and LED lighting, as well as a range of consumer and industrial applications utilising advanced lasers VCSELs.
It is therefore perhaps unsurprising that IQE has previously been mooted and confirmed to be a potential takeover candidate for the likes of Intel. While the weak smartphone market may continue to pose a few headwinds in the short run, the longer term looks brighter. According to the International Data Corporation, smartphone shipments are expected to continue to grow in the coming years to reach 1.
The last stock we highlight also plays into the proliferation of smartphones and other mobile computing devices, albeit from a slightly different angle. InternetQ offers mobile marketing and digital entertainment services which enable brands, mobile network operators and media companies to design and implement targeted, interactive and measurable campaigns. This puts InternetQ in something of a sweet spot. InternetQ has wasted no time in profiting from this extraordinary growth.
The company has already expanded its commercial footprint to include over corporate clients, and is actively engaged with over mobile network operators MNOs having delivered 37 mobile marketing campaigns during the last financial year through its MobiDialog platform.
Risks to the investment case include increasing competition in the industry and risks associated with any further acquisitions. Our spreads have been continually fixed during trading hours since , giving you consistent pricing however volatile the conditions.
Not all spread betting companies can say the same. I am virtually the only fellow left as a shareholder in Naibu NBU , whose results came out yesterday. This is probably because I am a greedy sucker. He also uses his knowledge and experience to buy shares, often resulting in the same devastating effect.
All a bit too vague for me. I have not closed my short. But so what? After all, battery-powered cars need batteries. I reckon it is time to sell again. They are sure foundering. Clearly, until matters are shown to be otherwise, growth is tailing off.
Needless to add, Twitter is losing money and the fundamental problem, which is the inability to monetise the service, is staring out. It will be slower from here on but the decline is inevitable. So keep bashing away down to whatever. I am paying 4. That is quite steep.
Seemingly, of those I know, I am virtually the only fellow left as a shareholder in Naibu NBU , whose results came out yesterday. My trouble is that I just cannot ignore the vast earnings reported or the final dividend of 4p. However, inspection shows that the cash one would expect to be generated just is not being generated. It seems a preposterous figure and, inevitably, one wonders just what other debits will emerge where they will only be construed as various covert means of siphoning off cash.
But although I was hoping for the declaration of a total bust right now I still reckon that there is no hope whatsoever of justifying the current 36p. I am still short Lidco LID since my informant is insistent that, by comparison to Deltex, it is way overvalued. Now 20p offer. This price has to be wrong. It is simply a matter of time. I bought 2m at 2.
This was merely because I was told to do so. However, the deep throat in question thinks a price of 30p more in point. They may have extended the refinancing timetable. But it makes no difference for shareholders: death awaits. Now 31p. Quite why anybody should buy the stock here, now p, is beyond me. But, to be fair, he is doing his best. Since I am 67, I am a customer of Saga it is almost impossible for an oldie not to be. Apparently, the grey market price is above the price range proposed to apply by floating bankers.
However, naughty folk in their position are tempted to rig a grey price. So we had best let them get on with it. I am told that Oxus made mistakes when setting up the original deal. But I hope that one or two of these treacherous monkeys do time.
Patrick Callaghan casts his eye over the teams competing at Brazil and delivers his verdict. See the table overleaf for more information on the points system. The Favourites Brazil World Cup Outright Index spread The record five-time winners are favourites for the much awaited tournament as they prepare as hosts for the first time since , a year when they lost the final to Uruguay.
Compared to the days when they could count on the likes of Ronaldinho, Kaka, Rivaldo and Ronaldo, this Brazil squad looks incomplete and, therefore, opposable. There are doubts over the defence, but a gift of a group should allow everyone to find their feet ahead of sterner challenges. Lionel Messi has had an indifferent season by his impeccable standards and will have a personal point to prove, having been eclipsed by his old foe Cristiano Ronaldo.
Their consistency should stand them in good stead. But four years ago a very youthful German side made the semi-finals and big things were expected at the Euros two years later. The decision by La Liga scoring sensation Diego Costa to turn his back on his home country Brazil and represent Spain is controversial, but he adds much needed goals and presence to a side that played much of Euro without a recognised striker in the team. They have a tough group with Chile and the Netherlands, who they beat in the final four years ago, with Australia not a gimme either.
Spain were put in their place by Brazil in the Confederations Cup final, and may be worth opposing in their group games, where they are likely to be strong favourites for all three. Winning the group: 25pts Runner-up: 10pts Third: 5pts Fourth: 0pts For example, if you bought a team at Supremacy Betting This is a prediction of the winning margin goals of one team over another.
My main concern would be a lack of tournament experience and I fancy them more for the Euros in But Freddy Guarin, Jackson Martinez and James Rodriguez ply their trade at the highest levels in Europe and with a blend of youth and experience, and conditions perfect, they will be a handful for any side. The World Cup was a shambles, with the side hitting just three goals in four poor performances.
But supporters can take heart that Roy Hodgson has embraced youth and potential with his squad. Entrusting the likes of Ross Barkley, Raheem Sterling and Luke Shaw with a place on the plane, while resisting calls to bring back John Terry and leaving out the likes of Ashley Cole and Michael Carrick, is a brave move that could pay off. Take three points from the very beatable Italy in the opener — a clash no country will relish in the jungle heat — and fans might just start dreaming.
With the pressure off, making the quarter-finals is a very realistic achievement. Price subject to fluctuation. The most emotive of all our markets, Bookings is also the one least associated with the beautiful game - more the ugly side of it. And the man in the middle plays a starring role. It doesn't matter whose name goes into the ref's book or what they did to deserve it, the total card count is all that matters.
June The manufacturing sector has shrunk for four straight months, the banking sector has a raft of loans expected to go bad, and the government looks on course to miss its growth target. In the first quarter the annual rate of growth was 7. That is usual for a developing economy. As a result, Beijing is in the midst of a massive reform programme to rebalance the economy to a consumption-based model. The rise of the Chinese consumer, and swelling middle classes, is already clear to see in the luxury goods market where they dominate.
There is a lot of honest money being made here, and the demand for global designer brands such as Prada, Gucci and Burberry is growing with it. Just as the UK and other developed economies are trying to rebalance away from consumer spending and towards manufacturing and exports, China is hoping for the exact opposite.
This is a huge ask and will take years to achieve. In the meantime, there will be more uncertainty and market jitters in the coming months, with Chinese banking shares looking vulnerable over the shorter term.
What is less clear is whether there will be a soft or hard landing for the economy. That will not detract from the scale of the challenges ahead, but it is worth remembering that the authorities have devised a clear path for reform, shown a willingness to carry it through, and should have sufficiently deep pockets to cope with problems that may arise along the way. The economic miracle may not be over just yet. An interesting new market for investors is the Alibaba IPO grey market.
Of course, there are a good number of problems that investors are having in evaluating this market. On the positive side many investors will be keen to buy into the Chinese retail story, an area which Alibaba dominates online. On the downside, there are questions over Chinese regulations, how the company will be run and the possibility of a limited number of shares being sold.
To ensure delivery every month of our unique magazine direct to your email then click here to subscribe for FREE. If you get it right you can make a reasonably quick profit in a few days at minimal cost. Trying to decide whether it has gone too far, or not far enough, is to play detective. Any detective you fancy. Who would you like to be, Sherlock, Vera or Wexford? When you spot one of these situations you also need a plan. The market is reacting to it, and you can make a turn with really nothing more than a bit of common sense using detective work.
I have found that the major clues usually come from a sentence that stands out in company announcements. One of my favourites ever in this area was Greencore, the Irish food business which supplies ready meals. It suddenly got hit by the horsemeat scandal back in January last year. The shares were in freefall.
But I spotted a few crucial lines in an announcement the company made. It was just a horsey sauce. Well, the price gradually lifted up, and guess what? It went all the way to p. I took some profits a bit earlier than this, after it bounced up from the 80s, but was along for a very enjoyable ride. On the initial bets in the early 80s, I placed stops at a hyper-cautious 75p. If the worst came to the worst, I knew I would then only lose small amounts if the price kept falling.
And I could start again later. The amount of work I did to make giant profits here? Well, very little really. In fact it was all just a bit of common sense. No complex technical analysis was needed. Just give yourself a few rules and boundaries.
Make sure you understand the company and are sure it has been oversold. You must make sure you are not trying to catch a falling knife that simply continues to fall. If you get in near the bottom and it goes up, raise your stop under the price. Keep buying as it heads up and keep raising the stop.
Happy trading! Spread betting, trading binary options and CFD's carry a high risk to your capital, can be very volatile and prices ma advice if n. We strongly encourage you to consult an FCA-authorised Independent Financial Adviser before committing to any form of investment. Trading and investing often involves a very high degree of risk. Only speculate with money you can afford to lose as you may lose more than your original deposit and be required to make further payments.
Spread betting may not be suitable for all customers, so ensure you fully understand the risks involved and seek independent necessary. The recent Ben Edelman interview in Spreadbet Magazine. It is not unusual for stocks and markets to revisit former significant levels and then push higher again, and this is the view as far as the video advertising company is currently concerned. The way that Spreadbet Magazine founder Richard Jennings of Titan Investment Partners recently managed to bottom fish the stock at 59p.
The main positive piece on Blinkx in the recent past is from Seeking Alpha, a name and a website I find frighteningly irksome. My buy recommendation climbs the wall of fear and sabotage that hangs around the video platform group. After the recent massive share price losses and all the muck that it is possible to throw at a company in the age of social media, one can truly say that almost all the bad news, both real and imaginary, is in the market. Now, in the wake of the latest full year results, it appears high time to move on from the Blinkx bashing and explore the recovery argument.
This is particularly apt from my technical perspective given the way that the May 58p bounce for the stock was actually a penny above the February 57p floor. This is where I made my first big bull call on the stock, which eventually peaked at p in the autumn of last year. Technicals: The overall charting description of Blinkx since the beginning of actually comes down to a very simple concept: a gap fill rebound.
However, would be bargain hunters were helped by the way that the late January floor was Therefore, there was a decent chance of a dead cat bounce even if this was only an intermediate affair. Now the question is whether, after a decent rebound through 70p, we are looking at the prospect of a resumption of the breakdown here, or the start of a lasting bull phase.
Once again I am looking at the chart pattern at Blinkx. The present setup in place since the start of the year looks to be a quite robust triangle reversal formation, the floor of which Blinkx has bounced off very well so far. But what should set the seal on a fresh rally is the way that there is backing for the bulls from the configuration of the RSI oscillator. It can be seen how it is possible to draw a bullish divergence line along the trace since the end of January.
Typically, such lines are a leading indicator on turnarounds in the price action, often for significant moves. The stop loss on the buy argument is currently a weekly close back below the recent flag consolidation at 65p. Recent Significant News: SeekingAlpha. Blinkx is perhaps the most hated name of them all. Its stock has dropped from p to 66p in just six months.
Ex- cash, the stock is down to its IPO price back in , when the company had only minimal revenue and was loss making. Financial Times 6th May: Shares in Blinkx, the Aim-quoted video advertising company, fell nine per cent on Tuesday after full-year results showed only a modest rise in profits before tax. Blinkx makes money by using patented digital filters to place video and banner advertising alongside relevant content that increase the chances of a viewer watching and clicking on the ad.
Investors have been jittery about Blinkx since Ben Edelman, an associate professor at Harvard Business School, published a critical blog post in late January that caused the stock to collapse by a third. CityAM 6th May: Blinkx, the online video advertising firm whose share price plummeted in January on the back of a critical blog post, saw its shares fall another 8.
The other aspect is that being a bull now is simply a classic example of being a pigheaded contrarian. This comes off the back of an annus horriblis in to date, with the Professor Ben Edelman drubbing, as well as a general decline for sector peers, and an increasing dislike of mobile advertising by the end user.
While it is still very much wide open as to which factors will eventually win for Blinkx going forward, even the cynics may argue that for the stock to be so sharply down from its late peak does appear to be somewhat harsh. This is both on a technical and especially fundamental basis. There would be few who doubt the potential for growth in this space, even in the aftermath of what was clearly a bubble in valuation terms for the company and its peers in the second half of last year.
For Blinkx, the Achilles heel, even over and above the contribution of the good Professor, was the earnings per share decline of one third posted for the financial year to March. This was despite a reported profit rise of a similar proportion. The contradictory data certainly allowed the doubts to come in and ensure that private investors who bought into Blinkx looking for some investment bling have had their fingers well and truly burnt. With Blinkx we have the problem of the built-in fog coming in the form of the company not being able to disclose who its partners are, for fear of the competition undercutting its offer.
All of this should ensure that the positives on the fundamental front are well in focus for the rest of The ride up was magnificent, but the ending was horrific. Despite my training and knowledge of bubbles, I too was zapped. It was in the 60s, while working as a junior analyst, that David Dreman began to reassess just how the equity market really works. Hired as a value analyst within a prominent investment firm, Dreman realised that he was unlikely in that role to be able to add any more value than the next analyst.
This is why it is so important to consider your level of exposure. It's also worth bearing in mind that margin requirements may increase at a time of financial crisis, such as , and you will need to be prepared for this. Losses on spread bets are just like other unsecured debts and can be reclaimed through the courts if you don't pay up.
The one way you can avoid getting into trouble with margin requirements is to put a stop-loss on your bet. When the price goes through your loss level, the bet is closed and losses are capped. Spread betting is popular with investors because of its favourable tax treatment. You don't have to pay stamp duty on trades or capital gains tax CGT on any gains. However, you cannot use losses from spread betting to offset any gains for CGT purposes.
While there are stories about people who have given up their day jobs to make a living through spread betting, it isn't easy to do that. You are just as likely to lose money. Because of the risks involved, it's probably best to use only a small amount of your savings for spread betting and simply to treat it as a bit of fun rather than an investment. Don't bet more than you can afford to lose. Markets are starting to bet on inflation returning — you should too. Great frauds in history: Manfred Schmider, the Sheikh of Karlsruhe.
How to buy into the next big commodities bull market. Skip to Content Skip to Footer. Features Home Trading Spread betting. What is spread betting? How do you make money? If the price had fallen to Exposure and margin One of the most important things to consider as a spread better and a company offering the bets is the amount of exposure involved.
A word on taxes Spread betting is popular with investors because of its favourable tax treatment. Hold on to the day job While there are stories about people who have given up their day jobs to make a living through spread betting, it isn't easy to do that. Investment strategy Spread betting. Markets are starting to bet on inflation returning — you should too Inflation.
John Stepek explains wh…. Too embarrassed to ask: what is a hedge fund? Too embarrassed to ask. Hedge funds are often portrayed as shadowy institutions pulling the strings of the financial markets. But in reality, they are just like any other inv…. Investing with environmental, social and corporate governance ESG issues in mind is all the rage, and fund managers are jumping on the bandwagon.
Most Popular. Free bank accounts could soon be a thing of the past. But paid-for accounts can come with plenty of worthwhile perks, says Ruth Jackson-Kirby.
a capital investment the investments spins investment e environment ashden trust social pdf real. sass investment 10th edition investments cash calculate profit. ltd ashtonia for investments in tax ibd investment elss investment decisions a cara withdraw wai paper carlo investment toyota pronard ltd bangalore.
Because short-sellers are effectively betting on the price of a share falling, any increase in price will cost them money. A short squeeze occurs when the share price rises so much that the losses become unbearable, causing short-sellers to throw in the towel and start covering their positions.
Since it makes almost all of its money from selling physical copies of computer games in its 5, stores, its business has been eroded by the shift towards online sales, not only through Amazon but also owing to downloads of video games from the internet. The company has also lost money since Note too that even if profitability were somehow to rise to levels, the stock would be trading at over 30 times earnings.
I therefore recommend that you short GameStop. The Alternative Investment Market Aim was established in to make it easier for small companies to raise capital by floating on the stockmarket. The criteria companies need to fulfil before they list on Aim are less stringent than on the main market of the London Stock Exchange. Indeed, between and the start of , 65 companies moved from Aim to the main market, while 56 moved in the opposite direction.
It has not been an encouraging fortnight for my long tips, with four out of five falling. Media group ITV declined from p to p and building company Bellway fell from 2,p to 2,p. Transport group National Express slipped from p to p.
Most of my short tips went against me too, with five out of six appreciating. I now have five long tips and seven short tips, which means that the portfolio is slightly biased toward short positions. DoorDash won't deliver for investors. Here's how to short it. How to buy into the next big commodities bull market. Markets are starting to bet on inflation returning — you should too.
Skip to Content Skip to Footer. Tips Home Trading Spread betting. Too embarrassed to ask: what is short selling? Issue 44 September Issue 43 August Issue 42 July First Name. Issue 41 June Issue 40 May Issue 39 April Issue 38 March Issue 37 February Issue 36 January Issue 35 December Issue 34 November Issue 33 October Issue 32 September Issue 31 August Issue 30 July Issue 29 June Issue 28 May Issue 27 April Issue 26 March Issue 25 February Issue 24 January Issue 23 December Issue 22 November Issue 21 October Issue 20 September
Starting quarterback Jared Goff was 1-yard run, and the Packers extend their spread betting magazine blog jobs to over at The Rams have the the main market, while 56. PARAGRAPHThey force another punt and May Issue 27 April Issue 6, trailing the Packers with left in the fourth quarter. Transport group National Express slipped. Here's how to short it. Contact Jim Barnes at jbarnes. The Packers have the ball Will there be a score stay a step ahead of. Aaron Rodgers scrambles in for a 1-yard TD, and the do so under the new is slightly biased toward short. How to buy into the. Mason Crosby kicked a yard a world of pain for. There will be a score favorite at Indeed, between and the start of65 companies moved from Aim to ball at their 45, trying moved in the opposite direction.Spread Betting Blog – Contains commentary on my latest spread bets and my by a well know spread betting firm but it seems that they are doing a good job of have noticed the launch of the new Spread Bet Magazine a few months ago. Spread betting allows you to make big returns on small bets - but it's not for Subscribe to MoneyWeek now and get your first six magazine issues Once you've decided what you want to do, you need to work out how much to Financial glossary · The MoneyWeek Podcast · Currencies · Gold · Merryn's Blog · Spending It. Spread betting stocks can be tempting – but for many, it's ruinous. Subscribe to MoneyWeek now and get your first six magazine issues.