Question for you:
I set up RR&A in order to provide very specific economic, investing and trading advice. How this progresses, and what the ideal balance should be will form over time.
But I am not sure what the RR&A readership is most interested in: The goal of the service is to guide individual investors
on their long term holdings, and discuss the Macro enviroment relative
to their asset allocation. But what about the occasional trading opportunity? How about a rare option trade?
In my opinion, Trading should be relatively rare — but when the occasion presents itself
(3 or 4 times a year) I like to take advantage of the opportunity.
Tuesday was a perfect example, and we issued the first RR&A trading alert.
Also, an even rarer option trade presented itself on Wednesday, and within the
confines (and under the legal protections) of Real Money, I posted an
option idea that turned out to be a moneymaker.
I have backposted that as an example of how we might show "Stale"
market/trade calls, but I am also interested in a broader question:
for potential and actual subscribers of RR&A, what is it that you
are most interested in: Long term investing? Asset Allocation? Medium term (30 days) Trades? Options?
Comment away; You guys have become my best R&D resource:
"AS WE WERE SAYING BEFORE WE WERE SO rudely interrupted by a man dressed in a white smock and wielding a scalpel (thank heavens he left his box-cutter at home), the stock market looks a bit worse for the wear."
So says Barron’s Alan Abelson, usually one of Wall Street’s most visible Bears. Just his luck — or was it the Trading Gods having some fun? — that he managed to be out of service for the most bearish period in 3 years. Traders, being a superstitious lot, will soon be begging Abelson to "let us know the next time you go in for a procedure" – so they can get short.
Regardless, whatever the man dressed in a white smock removed, it wasn’t his arch sense of humor or acid tinged tongue:
"The impact of the massive disturbance was global in every sense: Not only were its terrible tremors felt far beyond the narrow canyon of capitalism in lower Manhattan, but they commanded notice in quarters much loftier than trading floors or commodity pits. We’ve not the slightest doubt, for example, that what prompted the famed cosmologist Stephen Hawking early last week to urge earthlings to create settlements in space was, pure and simple, fear of the effect of crashing markets on the human race."
But the key to Abelson’s return is his clear eyed take on inflation, which comports squarely with our own views:
"FOR OPENERS, OUR HUNCH IS THAT MR. BERNANKE’S concerns about inflation, despite his mucking up the message with all that rubbish about inflationary expectations, have more than a modicum of merit. And our conviction on this score is only strengthened, of course, by the fact that so many pundits pooh-pooh inflation as a problem. Indeed, if anything, we fault the chairman for his evident sympathy with the argument that the fearsome upward spiral in the price of crude, so far, anyway, hasn’t been exerting all that much impact in the economy at large.
Apparently, Mr. Bernanke, like his critics, needs to get out more. Oil is a very sneaky commodity. Our old friend and revered Barron’s contributor, Abe Briloff, likes to describe certain stealth accounting practices as comparable to a bikini: what they reveal is interesting, what they conceal is vital. Oil is something like that: Its uses are readily manifest, but it plays a far bigger and more critical role in our lives than is easily perceived.