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Sunday, June 7, 2009

Week In Review: Weigh your Options, Make a Decision, Control your Risk (PODCAST)

"Each indecision brings its own delays and days are lost lamenting over lost days... What you can do or think you can do, begin it. For boldness has magic, power, and genius in it." - Johann Wolfgang von Goethe

Welcome to the "Week in Review"!

Last week, we discussed the Credit Markets, Bond Curves, Central Banking, and the implications therein.

Bonds continue to fall, which means that rates continue to rise. Now, the U.S. Dollar has fallen pretty far correct? I discuss that fall ... and more importantly ... specific options for everyone, traders and non-traders alike who are concerned about that fall, and what I see economically, in this "Week in Review" ...

(Podcast Included. If you're seeing this entry elsewhere and cannot play the podcast? Click this link to go to the exact podcast entry ...)

Click here to download this podcast.

Personally, I don't think it's a good time to buy the metals. They're pretty expensive at the moment. But then again, I can react to changes in value much more quickly than folks who are not traders. But if you want to buy just a little bit? I use the Northwest Territorial Mint to purchase my silver bullion.

Edit: One point of clarification. When I mentioned the Bond Curve (Which is Federal), I jumped a little too quickly to talking about state budget problems, without a key piece of information. What I had been thinking of, was a discussion we had in the Ventrilo Market Buzz Server about the muni-bonds, and their relation. Not all states and cities operate in this manner. But enough of the "Big GDP" states do, so that there is a relation between the muni-bonds of those states very key cities (which I think someone would have to be insane to get near muni-bonds right now) and the long end of the Bond Curve, which affects the Federal level. As I discuss the credit markets, remember ... there are four distinct areas of the credit markets, which are, and are not related on some levels (Government, Corporate, Fixed Income, Municipal Bond) But enough key cities do operate in conjunction with the credit markets, that it does end up affecting the entire state. I jumped a little too quickly, and my speech wasn't following my thought pattern. Sorry about that. I'll try to be a little more specific in the future.

Thanks to Matt for pointing out that point.

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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