Read JDShots' blog in RSS
February 2, 2009
Share This
Now that the stimulus announcement rally has passed, I will be looking to make the following trades in P&P before Monday's close of market. Granted, there will be more short-term rallies but they should not affect my overall outlook. Suppress dividends and bonuses to further drive away investors and talent.
In June 2008, there was more than $680T in outstanding derivatives. That is four to five times more than all the wealth in the world put together ($157T)!
TIMEFRAME
These picks should stick for at least the next year, if not the next five to ten years.
LEVERAGING
Apparently, professional investors don't trade leveraged ETF's, since they have access to more efficient leveraging instruments and strategies, which involve trading options on margin and what not.
Also, leveraged ETF positions are designed to be closed before the end of the trading day (day trading).
Since P&P does not support either of these trading styles, I will break this rule by holding them as long as I can, with the exception of the leveraged ETF's that heavily underperform their corresponding indexes (such as SRS).
For more info on the dangers of leveraged ETF's, see my blog post titled "Leveraged ETF's Exposed".
FINANCIAL CRISIS
For more info on the current financial crisis and the effects on related industries, see the list of resources below.
FINANCE - STOCK SHORTS
IEP- Icahn Enterprises, L.P.
LM- Legg Mason Inc.
BUSE- First Busey Corporation
FNF- Fidelity National Financial, Inc.
BTE- Baytex Energy Trust
BKCC- BlackRock Kelso Capital Corporation
FIG- Fortress Investment Group LLC
HGT- Hugoton Royalty Trust
FSRV- FirstService Corp.
FAF- First American Corp.
STT- State Street Corp.
WFC- Wells Fargo & Company
C- Citigroup, Inc.
MS- Morgan Stanley
PNC- PNC Financial Services Group Inc.
STI- SunTrust Banks, Inc.
TCB- TCF Financial Corporation
BAC- Bank of America Corporation
BK- The Bank of New York Mellon Corporation
GS- Goldman Sachs Group Inc.
CODI- Compass Diversified Holdings
KEY- KeyCorp
JPM- JPMorgan Chase & Co
WAL- Western Alliance Bancorporation
CME- CME Group Inc.
NYX- NYSE Euronext, Inc.
NDAQ- Nasdaq OMX Group Inc.
UBS- UBS AG
CM- Canadian Imperial Bank of Commerce
TD- Toronto-Dominion Bank
BNS- The Bank Of Nova Scotia
RY- Royal Bank of Canada
FINANCE - ETF SHORTS
UYG- Ultra Financials ProShares
RKH- Regional Bank HOLDRs
KBE- SPDR KBW Bank
XLF- Financial Select Sector SPDR
IYG- iShares Dow Jones US Financial Services
PRFF- PowerShares FTSE RAFI Financials
EXB- Claymore/Clear Global Exchanges, Brokers
IYF- iShares Dow Jones US Financial Sector
KIE- SPDR KBW Insurance
PGF- PowerShares Financial Preferred
IAT- iShares Dow Jones US Regional Banks
VFH- Vanguard Financials ETF
KCE- SPDR KBW Capital Markets
RYF- Rydex S&P Equal Weight Financials
IAK- iShares Dow Jones US Insurance
IXG- iShares S&P Global Financials
IAI- iShares Dow Jones US Broker-Dealers
KRE- SPDR KBW Regional Banking
PFI- PowerShares Dynamic Financials
PJB- PowerShares Dynamic Banking
DRF- WisdomTree International Financial
PIC- PowerShares Dynamic Insurance
FXO- First Trust Financials AlphaDEX
FINANCE - ETF BUYS
SKF- UltraShort Financials ProShares
FAZ- Direxion Financial Bear 3X Shares
RESOURCES
Financial crisis of 20072009 - Wikipedia
http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932009
Global financial crisis of 20082009 - Wikipedia
http://en.wikipedia.org/wiki/Global_financial_crisis_of_2008%E2%80%932009
More than $680T in outstanding derivatives in June 2008!
http://www.bis.org/statistics/otcder/dt1920a.pdf
Credit crunch - Wikipedia
http://en.wikipedia.org/wiki/Credit_crunch
TED spread - Wikipedia
http://en.wikipedia.org/wiki/TED_spread
Deflation - Wikipedia
http://en.wikipedia.org/wiki/Deflation
The Credit Crunch and post-modern private equity (2007 2008)
http://en.wikipedia.org/wiki/Private_equity_in_the_21st_century#The_Credit_Crunch_and_post-modern_private_equity_.282007_.E2.80.93_2008.29
Stern on Finance
http://sternfinance.blogspot.com/
Economic Crisis in a Globalized World
http://www.pbs.org/wnet/wideangle/uncategorized/how-global-is-the-crisis/3543/
