Monthly Archives: June 2012
My Update on India.
The great thing about running an online newsletter is that it is not only self-correcting, it is self-enhancing. Whenever I make a mistake or state a factual error, my inbox catches on fire when corrections, additional data, and chastisements. Ditto when I exclude some key points to bolster my own arguments. So I thought I would publish a letter I received from a reader from the subcontinent regarding yesterday’s piece on “India is Catching Up With China”.
“Dear Sir,
I am surprised in your comparison with China because you have missed several important points. India is a democracy. It does not have a Ponzi/mafia political party which focuses on looting the nation. Check out the number of billionaires in the Communist Party of China. Patents are relatively much safer in India. The press is free and vibrant. There is no “mad” overcapacity in anything like empty buildings/cities and the like.
The Indian judiciary is slow and generally very fair. India does not have problems of one child policy. Air pollution in Indian cities is probably lower. Most importantly: the fundamentals of the Indian economy in many ways are better than the Chinese. India does not control its currency artificially. There are fewer Indians trying to run out of India than Chinese trying to run out of China. In fact, most Indians can take foreign currency outside the country up to a limit. Few do it in China.”
Regards,
Kshitij Gupta
Here’s the Better Bet
Quote of the Day
“The number one performing stock market of the past ten years in nominal terms has been Zimbabwe. But if you bought equities there you lost all your money because the ZWD$3 trillion you made now buys you three eggs,” said Kyle Bass of hedge fund, Hyman Capital.
Quote of the Day
“The number one performing stock market of the past ten years in nominal terms has been Zimbabwe. But if you bought equities there you lost all your money because the ZWD$3 trillion you made now buys you three eggs,” said Kyle Bass of hedge fund, Hyman Capital.
Daily Q&A With Chuck Hughes
Question:
I would appreciate if you can tell me when the ESRX covered call was closed. I don’t remember getting the trade alert to close it, and also I can’t find it on the list of closed trades or open positions.Also when we can expect to get some new trade recommendations, since number of positions were closed last week. Thanks.
Answer: We’ve had fewer than normal new trades due to the non-trending markets as well as the increased volatility. I’ve learned through experience that it is better not to initiate a lot of new trades when the markets are this volatile. During difficult markets such as these, the reward versus risk ratio is too low for initiating new trades. Once the markets seem to stabilize I have a lot of great trade opportunities lined up. Overall, the Cash Flow Portfolios are performing well, despite the recent market correction.
Closed Position Report- First Solar Inc. (FSLR)
6/22/12 Option Assigned-Sold FSLR at $15.00
6/13/12 Purchased FSLR at (13.80)
Net Gain on Sale of Stock $ 1.20
6/13/12 – Sale of June 15th $14 Call .46
6/18/12 – Sale of June 22nd $15 Call .31
Total Gain on FSLR $1.97
Return % 14.3%
If $10,000 invested, dollar return would be $1,379. Based on
$10,000 invested, you would have bought 700 shares.
14.3% return for a 1 1/2 week holding period.
