Invest Offshore

Category: Stocks and Bonds

  • The Nature of Market Speculation

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    Aaron
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    Q: Are you turned off by the zero sum and negative nature of market speculation? Especially short selling? A: No. It is only a zero sum game for the speculators involved. For the market economy, it is a win win. The price signals sent by the changes caused by the nature of market speculation are…

  • Is Tesla Motors CEO Elon Musk a Hero?

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    Aaron
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    Q: Is Elon Musk a hero? The mind behind Tesla Motors (TSLA), SolarCity (SCTY), and SpaceX — founded in 2002 by Tesla Motors and not yet public — certainly is to early investors. Will he be their hero tomorrow? A: It’s unlikely. Musk has done a brilliant job as stock promoter. The rest is still…

  • Amazon AMZN on the Fixed System Short List #2

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    Aaron
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    Q: Does Amazon (AMZN) qualify for the Fixed System Short List No. 2? A: Yes, it qualifies but it isn’t on just yet. I’m currently reviewing a lot of options and waiting for the completion of a countertrend bear market rally. Q: Do you see any accounting issues with Amazon? A: No more than all…

  • Fixed System Short List #2

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    Aaron
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    Q:I understand that you’ve started a second short list. Can you give us more details? A: Yes, the Fixed System Short List #2. Criteria for getting on the list are as follows: A prior price rise greater than 500% A large market capitalization that makes further price rises unlikely to exceed 33% Sufficient opportunity for…

  • Gold Mining Shares is a Sound Strategy

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    Aaron
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    Q: We have had a significant up move in the gold mining shares since the middle of January. I remember your suggesting that for portfolio investors, dollar cost averaging into the shares was a sound strategy. Have you changed your view now? A: No, it is a sound strategy still for anyone looking to acquire…

  • Stock Market Capitulation

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    Aaron
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    Regarding Stock Market Capitulation Q: I see that Tesla Motors was down to $148 yesterday (written on Feb 9.) from $211 on January 8, 2016 when you placed it on your short list. That comes out to a 60% rate of return on a retail margin for short selling of 50% in less than a…

  • The Fixed System Short List

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    Aaron
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    The Fixed System Short List TSLA closed February 2, 2016 at $182.78, a drop of $28.22 in just eighteen days. That’s a profit of 26% if your broker requires a 50% retail margin on a short sale, and better than double if you’re trading options, in this case put options. For a portfolio manager, the…

  • Short Selling and Speculation by Arthur Fixed

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    Aaron
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    Q: I see that TSLA closed at 173.48 yesterday. That is down substantially from your short at 211 on January 15, 2016. Care to give us an update on your thinking? A: The chartist would point out that it is now clearly under a two-year distribution top pattern. To their way of thinking that pattern…

  • Holy Grail, the Fountain of Youth, and El Dorado

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    Aaron
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    Is it the search for the Holy Grail, the fountain of youth, and El Dorado? Is it the quest to turn base metals into gold? Is it a dream and an illusion? At times, I felt like I was sleepwalking. But it was real. I traded on leverage, pyramided futures and stock options, and turned…