Category: Futures, Options and Commodities
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Mathematical advantage in approach to trading
Q: Is there any mathematical advantage you have with your approach to trading? A: Mathematics is a system of logic. It is not possible to arrive at a valid conclusion if you use fallacious logic. Additionally, your conclusion may be valid, in that it follows from the premises stated, but never the less false because…
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Corruption in the USA government
Q: I am appalled by the amount of corruption in the USA government. Does this always happen when an empire is in its last days? And, how does it affect your trading strategy going forward? A: Good questions. Keep in mind a basic economic law: all value is subjective. It is never the corruption that…
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Man, Economy, and Spiritual State
Q: What should I tell a client who is uncomfortable with speculation and would rather buy and renovate real estate when the yield is over ten percent and sell when it’s under five percent? A: That is a very good question. It raises many issues, which Rothbard (Man, Economy, and State) and Mises (Human Action)…
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Government economists and propaganda
Q: Larry Summers, interviewed on Bloomberg this week, opined that the reason government economist where unable to predict any of the recessions since WWII was that: the economy is too complex to predict and making such a predation would contribute to pessimism and so might be self-fulfilling. How do you explain their incompetence? A: I…
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Beyond investment advisors and financial managers
Q: How do you differ from other investment advisors and financial managers? A: I do not deal in investment nor do I render standard financial advice. What I am offering is a pure speculation based on the application of economic law. I do not take custody of client funds. It is possible to enter into…
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Speculation for profit, selling commodity options
The practice of option selling is a controversial strategy for commodity option traders to partake in. Many brokerage firms outright forbid the practice; others allow it, but there are often strings attached. However, there are a limited number of brokerage services that recognize despite the challenges of option selling, it likely offers the highest long-term…
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Martin Armstrong and Asset Allocation Models
Can a computer model predict the world economy? MARTIN ARMSTRONG, once a US based trillion dollar financial advisor, developed a computer model based on the number pi and other cyclical theories to predict economic turning points with incredible precision. In the early 80s he established his financial forecasting and advising company Princeton Economics. His forecasts…
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What it means when gold sells at a NEGATIVE price
Nearly four months ago on June 2nd, something very unusual happened in Edmonton, Alberta, Canada. The price of propane actually became negative, hitting an unbelievable -0.625 cents per gallon. It’s hard to believe that the price of a productive commodity could become so beat down by the market that producers would practically have to pay…
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Foreign Investment Account Ownership
Purchasing Power of this Non-U.S. Registered Investment Account Investments are purchased as a deemed institutional professional investor, non-U.S. person and foreign country resident. Whether you are or are not a U.S. person is exempt from reporting and that means you are free to deal without U.S. person restraints, restrictions or blockage globally. The Internal Revenue…