Naked Hedge Fund

Tops and bottoms in markets are an exciting event that consistently lure investors into pulling the trigger too early. No one is immune to the temptations and commotion surrounding these events. This is especially true this day and age with all of the potential skeletons in the closets of banks that they are holding closed for the time being. Jumpiness is never a good thing when it comes to trading.

A couple of interesting videos on a couple of the latest topics

Naked Hedge Fund Weekly report. PDF on post.

As a play off of Japan’s “Lost Decade” I wanted to show a decade long chart of the SPY (S&P500) to put things in perspective. The point being if you are typical investor out there you have invested for the past 10 years and are still at a loss. Typical investor being someone who is involved with the ridiculous scenario of being unable to play the short side of the market and are continuously getting duped into buying dinosaur long side mutual funds for maximum kickback for their broker. We are still in a dangerous area for these types of investors and if you are one of them (Don’t worry no one can see you) this chart should be a wake up call that you need to get control of your money and your future. I understand that the 401k does the contribution matching, which is free money and should be taken advantage of, but you need to learn how to protect and hedge yourself. This way you can make money no matter which way the market decides to go.

Naked Hedge Fund Weekly report. PDF on post.

I know that this is a post that I have done before, but I wanted to revisit it since a lot has changed since this post was originally made. With the terrible foreclosure numbers that came out yesterday are we finally moving out from the “eye of the storm” on the mortgage reset chart or is this rise from a different animal such as “strategic foreclosures” ?

From the Financial Times article:

Goldman Sachs on Tuesday apologised for its role in the financial crisis and pledged $500m – or about 2.3 per cent of its estimated bonus and salary pool for 2009 – over five years to help 10,000 small businesses across the US recover from the recession.

The moves come as Goldman tries to defuse a political and public backlash at its plans to share billions of dollars among top dealmakers after rebounding sharply from the turmoil and earning record profits in the first nine months of the year.

Lloyd Blankfein, Goldman’s chief executive, told a corporate conference in New York that the bank regretted taking part in the cheap credit boom that fueled the pre-crisis bubble. “We participated in things that were clearly wrong and have reason to regret,” Mr Blankfein said. “We apologise.”

Unfortunately stockalicious.com has completely stopped supporting their product and its broken. I figured this would happen some time or another. So Im going to have to look for another product to be able to show updated performance on the sidebar. Its too bad because it filled the bill of what I needed, but it has not updated for weeks now. If any of you know of another site out there that provides portfolio performance and has the ability to post the performance as a sidebar widget let me know. Im going to take a crack at making my own when I get a chance … hopefully my software writing days come back to me.

CNBC has destroyed so many innocent people’s accounts out there. From the loose cannon bottom caller Jim Cramer to Larry “Goldilocks” Kudlow the whole crew has spun optimism with endless daily verbal diarehea. I think that what people deeply despise about CNBC the most is that they have taken a beautiful thing like optimism and tarnished it. They have tarnished it with :

* Zero accountability
* Touting strategically tailored information (For example they love showing very short term charts of economic numbers, which leads viewers to believe things have completely recovered even though the number is still down 50% from the peak in 2007)
* Cheering completely wrong information (an example in post)

FHA loans are the new exotic mortgage out there. Every addict … I mean person involved with with real estate is gobbling up as much as they can get with the Government backing. It seems that the banks have learned a lesson from the mortgage fallout by actually requiring people to establish equity in a home right off the bat with 20% down, but the Government is much more savvy only requiring 3.5% down. Im sure this will work out great for all involved… by the way if your an American citizen that means you.