Posts tagged China

Competitive Devaluation; Not the Way To Run an Economy

Last night, the People’s Bank of China devalued their currency 1.9% relative to the value of the US Dollar.  China’s economy is more than sputtering.  It’s out of gas.  They have already banned short selling and manipulated their stock market. …






Utter Manipulation

Chinese shares are up over 5% today.  I didn’t have any positions in any Chinese companies or indexes.  I was short some option premium, so I lost a little there but not too bad.  The Chinese politicos are backslapping themselves. …






Capitalism Hits The China Market

If you are a behavioral economist, you might start studying the Chinese stock market.  That market might have data in it that could make the case that irrational investors exist, and they actually price things irrationally.  I am referring to …






Is A Cyber Attack an Act of War?

This past week it was revealed that the Chinese hacked into American government computer systems and stole sensitive information about 16.9 million military and intelligence employees applying for security clearances. Is this an act of war or not? We could …






Liquidity and Startup Investing

One thing that people don’t understand about angel investing are opportunity costs.  There are opportunity costs when you are faced with a choice between investing in a startup, investing in the stock market, investing in treasuries, investing in real estate, …






It’s A New Information Age in Financial Markets

When I traded on the floor, one of the reasons it there was a cost to be there was we had better information than the rest of the market.  I will never forget one day in the 90’s when former …






Never Look A Gift Horse In the Mouth

That’s an old saying. But old sayings have a way of being true.  I remember doing that with out trades on the floor.  Sometimes, you’d have a trade that didn’t match up from the previous day, or even previous hour. …






Are You A Puppet?

If you read ZeroHedge enough, you will eventually think dark thoughts all the time.  His blog is predicated on fear.  Sometimes there are some posts there that give a person pause.  This post was one of them.   Out of …






Where To Find Money If You Are A Startup

If you are a startup, how do you find money?  The other day when I spoke to a class at Chicago Booth we discussed it.  The class listed a bunch of the sources, and the pluses and minuses of each …






Distractions, Multitasking Make You Worse

My wife sent me an article she read.  I think it’s totally accurate.  It’s really accurate when I look at my own life, and I wonder if it’s accurate if you look at yours.  It has a lot of very …






Want To Go To College And Study Engineering For Free?

The world needs more engineers.  We can always use them. Engineering is a great way to structure your thinking.  It’s a great way to organize the world. Some of the best traders I saw were engineers.  Every company that gets …






Bitcoin Exchange Regulations

The blog TBI has a piece up on the state of bitcoin.  In it he identifies one of the challenges of bitcoin: 2) We’re in desperate need of exchange regulations, as I’m pretty much convinced that this BTC price is almost …






When Will US Companies Scream About The Dollar?

One of the things that businesses watch carefully is the value of the US dollar.  One of the shining parts of the American economy over the past ten years has been the growth of multinational corporations.  They are able to …






Younger Generation Engaging Less in Entrepreneurial Efforts

The trend is clear.  Younger people used to start a lot more entrepreneurial type businesses in years past than they do today.  Only 3.6% of businesses today are started by people less than 30.  In 1989, it was 10.6%.  However, …






Expensive Oil: Bad for Market, Cheap Oil: Bad for Market

Ha, I shook my head when I started to see headlines that cheap oil was bad for stocks.  I also didn’t see any headlines blaming speculators for cheap oil like they do when oil hits new highs.  Josh Brown summed …






Ebola Helping the Market Break

This market is reminding me a little of 1987.  The trading action the week before the crash in 1987 was extremely volatile.  There were weird events that happened that caused instability as well.  We have a ways to go to …






What Stops The Music?

The stock market has been going up for the last five years.  Sure, there have been some pullbacks, but this market feels like the 1996-2000 market.  In those years, all you had to do was close your eyes and buy. …






We Don’t Have A Strategy Yet

That excuse can work in startups.  When you are a founder and your investor or board member questions you about something, it’s totally allowable to say, “We don’t have a strategy yet.”  No one can have all the answers all …