Archive - Aug 4, 2010 - Blog entry

Want to invest in an extremely well managed country with almost no debt, budget surpluses, an appreciating currency, and the price for its dominant export commodity going through the roof? Then Chile is the place for you! (EWC), (SQM).

Ontario Teachers’ Pension Fund has shown it is not squeamish when it comes to risky investing.
The pension fund has purchased a significant chunk of Transocean Ltd. the oil rig contractor involved in the explosion that led to the massive oil spill in the Gulf of Mexico. Is Teachers making the right call? I think so...

The International Monetary Fund (IMF) stress tested 53 large banking holding companies, and concluded that despite restoration of some stability, there remain certain important risks to the U.S. financial system and economy mainly coming from the real estate sectors.

I almost choked when I read Lee Bollinger's op-ed piece in the Wall Street Journal advocating public financial support of the mainstream media. This is the Lee Bollinger who is the president of Columbia University and was recently named Deputy Chair of the New York Federal Reserve Bank. It is unbelievable and irresponsible that anyone in his position could seriously advocate subsidies for the press.

The report due out from the SSTF will get a lot of press. SS is up for cuts and this report lays it out. But we will get a "sunny" picture. What to expect:

Yeah, I said RIM was looking more and more like a short right before they released their new flagship product! So, after the release, should I change my mind?

One to watch today.

Markets in a Flash

· Overnight Japanese markets closed lower. This may be as the JPY appreciated investors see exporters getting hurt. The Nikkei 225 was down -2.11%.

· Equity markets in China and Hong Kong finished higher overnight. The Hang Seng index was up +0.43%, while the Shanghai index was up +0.44%.

· European equity markets are down today but as trading continues they are starting to regain their losses. The Stoxx 50 is down less than -0.50%

A geopolitical analyst’s view of the future. The Islamic assault on the West is failing. Chronic resource shortages could cause the Middle Kingdom to break up. Japan may invade China as early as 2030. The next Pearl Harbor could come from the moon. The militarization of space. The big challenge towards the end of the 21st century will be the emergence of a Hispanic nation in the US Southwest. An exclusive Interview with Dr. George Friedman of Stratfor on Hedge Fund Radio. (FXI), (RSX), (EWJ), (TUR), (EPOL)