#BuschUpdate How to improve your investing

#BuschUpdate How to improve your investing

The WSJ carried a great article today about how to improve your investing. I think often I spend too much time focused on the “flavor-of-the-week” stock, currency, bond for investing. While this isn’t a bad strategy for trading, it’s a very poor one for investing. The two are very different activities.

Trading is the art of moving money in and out of instruments with leverage to take advantage of relatively small movements in the markets. The key for trading isn’t great ideas, but rather great discipline to enter and exit according to a pre-determined plan.

Investing is a completely different animal as the time frame is longer and the expected returns larger. To be an investor, one needs to do longer term research such as understanding a country’s tax policy towards exports (for currencies) or reading annual reports/10Qs/transcripts of conference calls for stocks. I know I need to do more of this prior to recommending a stock or a currency trade. Unlike acting, more is better when it comes to investing.

Take a read of the article and see if you can improve your own investing.

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Blog Archive

9/01/2015: What Needs To Be Fixed Now

Globally, the markets remain extraordinarily volatile with oil and stocks acting like kids at the end of a seven-hour drive home from vacation. (Picture above is what my family used to use to drive 7 kids to northern Michigan!) The latest news trigger appears to be (quelle surprise!) that China’s PMI numbers are weak. Folks,...

8/26/2015: What’s driving this week’s global market volatility?

After spending most of 2015 in the narrowest trading ranges seen in decades, the global financial markets have exploded with volatility. This is best exemplified by moves in the Dow Jones Industrial average on Monday, August 24. The Dow sank over 1,000 points to start trading, then rallied back 1,000 points by mid-day, and finally...

8/16/2015: China’s other big hole in the ground

The chemical explosion in Tianjin has left a massive crater in the port city. The owner of the warehouse has apparently gone on the record saying that the site was authorized to hold 10 tons of sodium cyanide, but his firm had just delivered 700 tons. For those wondering, sodium cyanide can release hydrogen cyanide...

8/06/2015: Why Trump is like the President Schwarzenegger

This week, I did my Tuesday appearance on i24News covering oil, China, and the Fed.  You can click on the video to watch the 2.5 minute hit or read the BPs here. Click to watch I’ll be on BNN this afternoon hitting the US dollar, tech, and tonight’s GOP debates. Wisely, FOX choose to split them...

8/04/2015: Quick View: Oil, China, and Fed

This AM, I did an interview with i24News in Tel Aviv covering oil, China, and the Federal Reserve. Below are my notes from the interview.  If you’re out on vacation, this is great, quick read to get you caught up on a market that will go to sleep after Friday.  I’ll post the interview after...

7/20/2015: Trump: himself, rope, hang

Say what you want about the Donald, but he does have the ability to hit raw nerves in the GOP base from time to time.  While ridiculously self-serving and damaging, his comments hit the base’s spine after the SF sanctuary Lopez case. “I love the Mexican people. I do business with the Mexican people, but you...

7/20/2015: Warning: Raw Currency Research!

In preparation for a speech I’m giving at the BMO Fixed Income conference this week, I’ve assembled all the URLs from my recent searches along with some descriptions.  Outside the US, the over-arching global theme remains QE with a weak currency. Yellen’s testimony:  http://www.federalreserve.gov/newsevents/testimony/yellen20150715a.htm In its most recent statement, the FOMC again noted that it judged...

7/20/2015: 3 Currency Graphs To Munch On

EURUSD:  2yr daily, 200DMA, and comments     USDJPY:  5yr weekly, uptrend channel, comments     USDX:  3yr weekly, blue line 200DMA, comments  

7/20/2015: Welcome Back From Vaca!

For those returning from vacation, welcome back! I hope the break was nice and you got a chance to do a brain download and clean-up.  Let me know the books you are consuming.  I went back to 2002 to read “I Am Messenger.”  Great fun! Major themes for the markets: Greece and EU:  we’ve got...

7/10/2015: Andy’s HC jam research on SCOTUS ruling and implications for business

Hey, I’m jamming away on an article on the US Supreme Court ruling on ACA and it’s impact on business.  The article will be out next week, but I thought I’d send along the urls for all the research I did.  This things uber complicated, but there are some basic points to understand and reforms...

7/09/2015: Andy’s back and I’ve got bug bites to prove it from Greece, China, and Iran!

Hey, I realize it’s been a while, but everyone needs a break! I went up to South Haven Michigan for the 4th and it was awesome because we didn’t get the rotten, rainy weather most of the Midwest experienced. Of course, there was an ill-fated kayak trip down the Black River that turned into a...

6/22/2015: The Real Greek Dilemma: Is it better for EURUSD for Greece to stay or go?

As everyone in the media and markets remains fixated on the EU Summit and Greece, let’s take a moment to think about the broader implications on the value of the currency. Is it better for the EU to continue to provide funding to a member state that has broken the rules to not only get...

6/22/2015: Il Budget Update: how the lowest rated state is doing

For those of you watching and wondering how lowest rated state in the republic is doing, here’s my latest update on the budget negotiations and reform efforts in Illinois. IL Gov. Bruce Rauner Illinois Budget Battle Begins: what it means for business As summer begins, the debate over the future of the state of Illinois...

6/15/2015: DC Insanity: Voting ag Trade Adj, then Voting for TPA

What a fun DC Friday that was?  How confusing was it that the House voted down a bill on Trade Adjustment for workers as a way to kill TPA, but then voted to pass TPA?  Say what?  Yep, that’s how our government works. What’s fascinating to me is how many Democrats voted against Trade Adjustment...

6/15/2015: 3 Charts for Monday: 10yr, rates past and present, Fed behind wage curve

  3 Charts for Monday US 10yr note:  sideways/slight uptrend in price Click to enlarge The above chart is a 3yr price graph of the US 10 yr note futures.  Two weeks ago, I drew a trend channel that has a slight uptrend.  At that time, I made the point that while the price was...

6/01/2015: BU 3 Charts for Monday w/central bank week on the sked

Besides US NFP data, this is “Central Bank Week” as we get 6 meeting and providing their thoughts on monetary policy for their country. In order: Tuesday:  RBA mkt exp.  unchanged at 2%, RBI mkt exp. 25bp cut in the repo rate to 7.25% Wednesday:  ECB mkt exp. no change, Brazil mkt exp. a 50bp...

5/26/2015: China’s currency manipulation and TPA

For all those in Congress attempting to get a currency manipulation bill together to fight against the Chinese, I suggest you take a close look at the graph above.  It is a percentage change chart of the US dollar against the Chinese Yuan in red and the Japanese Yen in green over the last year....

5/26/2015: EURUSD Revisit: Where do we go from here?

Last week on Monday, I made this call on the EURUSD: The above graph is a 3 year chart of EURUSD. I’ve got 2 lines of text. One, Draghi warns on strong EUR at 1.37. Two, FOMC notes strong $ at 1.07. Clearly, we’re still in a downtrend. Clearly, we’ve bounced from the lows at...

5/18/2015: BuschUpdate: EM rabbit hole research

Like most analysts, I love diving into research and letting it take me down rabbit holes.  Below is an early week list of the URLs I’ve hit over the weekend and today. I think my favorite “find” so far has been this page: http://blog-imfdirect.imf.org It’s a shame you can’t sign up for a newsletter, but...

5/18/2015: BuschUpdate: 3 graphs to start the week

I hope everyone enjoyed the weekend and is ready to get back to thinking about the markets!     For the rest of us, I’ve got 3 graphs to get you thinking about what’s happening and what we can anticipate this week.   Where is the US GDP for Q2?   Click to enlarge After...

5/04/2015: 3 thoughts: China, bond yields, and 2016 religious opportunity

China’s currency. The Chinese have recently been on their best behavior when it comes to their currency. Since 2005 when the IMF deemed the currency undervalued, the CNY has appreciated from 8.7 to the US dollar to a recent low of 6.05 or about 30%. The WSJ graphic shows the appreciation of the currency and...

5/04/2015: Andy’s overview on central banks, currencies, and stock valuations

Below is a brief summary of key global central banks and where they stand with monetary policy. i. Fed: 1. Believes economy has recovered enough to end QE 2. Goal is to normalize interest rates. 3. Timing is in question: i. ECB 1. Believes economy needs QE due to deflation, high UE, low GDP. 2....

4/27/2015: Why Chinese stocks are like eating meat off a grill

Just a couple of thoughts for the day: Chinese stocks. Last night, the SHCOMP staged a 3% rally again. This index (and others in China) have exploded over the last year as the Chinese government has taken steps to encourage it from regulatory changes (HK link) to monetary policy changes (easing) to current account changes...

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