8 hard-to-swallow truths about investing

Josh Brown has an interesting observation up on his tumbler page about what investors understand intellectually, but don’t accept in reality.

  1. Anyone can outperform at any time, no one can outperform all the time.
  2. Persistence of performance is nearly non-existent.
  3. Taxes and commissions matter.
  4. Smart doesn’t equal good.
  5. Incentives matter.
  6. The crowd is always at its most wrong at the worst possible time.
  7. Fear is significantly more powerful than greed.
  8. There is no pleasure without the potential for pain.

Source: Seven Truths Investors Simply Cannot Accept

Opening Bell 24.07.2014

Your world at 9am

world equity markets 2014-07-24

Equities

Major
DAX(DEU) +0.20%
CAC(FRA) +0.16%
UKX(GBR) +0.04%
NKY(JPN) +0.11%
SPX(USA) +0.18%
MINTs
JCI(IDN) +0.26%
INMEX(MEX) -0.15%
NGSEINDX(NGA) -0.28%
XU030(TUR) +0.36%
BRICS
IBOV(BRA) -0.97%
SHCOMP(CHN) +0.65%
NIFTY(IND) +0.36%
INDEXCF(RUS) -0.06%
TOP40(ZAF) -0.10%

Commodities

Energy
Brent Crude Oil +0.09%
Ethanol +0.00%
Heating Oil +0.14%
Natural Gas -0.03%
RBOB Gasoline +0.22%
WTI Crude Oil -0.01%
Metals
Copper +0.72%
Gold 100oz +0.00%
Palladium -0.19%
Platinum -0.48%
Silver 5000oz +0.00%

Currencies

USDEUR:+0.03% USDJPY:+0.07%

MINTs
USDIDR(IDN) +0.22%
USDMXN(MEX) +0.01%
USDNGN(NGA) -0.18%
USDTRY(TUR) +0.05%
BRICS
USDBRL(BRA) +0.30%
USDCNY(CHN) -0.10%
USDINR(IND) -0.24%
USDRUB(RUS) -0.36%
USDZAR(ZAF) +0.08%
Agricultural
Cattle +1.41%
Cocoa +1.63%
Coffee (Arabica) +4.69%
Coffee (Robusta) +0.25%
Corn -0.28%
Cotton -0.10%
Feeder Cattle +0.52%
Lean Hogs -0.62%
Lumber +0.00%
Orange Juice -0.62%
Soybean Meal +0.08%
Soybeans -0.06%
Sugar #11 -1.22%
Wheat -0.05%
White Sugar -1.04%

Must reads

A quick explainer on why India is torpedoing the WTO deal:

India has told the World Trade Organization (WTO) that it will not endorse a trade facilitation protocol by its deadline of 31 July unless its concerns on food security and public stockholding are addressed—a move that threatens to stymie a global trade deal.

WTO rules allow countries to keep food reserves as long as they don’t “have the effect of providing price support to producers.” And when the government sells those stocks, it can’t do so at below the domestic market price.

But this is exactly what Indian MSP and PDS do. The government buys wheat and rice from farmers and distributes it to state-run shops across the country, where the grains and other staple goods are sold at cut-rate prices.

Sources: (LiveMint, WSJ)

RBI is working on a system to enable entrepreneurs seeking an honourable exit from unattractive ventures. (LiveMint)

Last December, the Federal Reserve sent a letter to Deutsche Bank, telling management, in essence, that it ought to set fire to its U.S. operations and collect the insurance money, then get out of the banking business. (DealBreaker)

Ethiopia’s emerging potential as a production center for labor-intensive products from shoes to T-shirts to handbags. “Ethiopia is exactly like China 30 years ago.” (Bloomberg)

Good luck!

Options Daily 24.07.2014

Nifty OI

nifty.puts.calls.JUL.2014-07-22.2014-07-23

Anomalous Option Trades

A sudden increase or decrease in open interest can signify informed buying/selling that you can potentially profit from. Option traders tend to ‘lead the pack’ and their actions can be used to gain insight into the consensus opinion of traders. This scan lists option trades that were one standard deviation away from the average over the last 20-days. Note that this scan maybe too noisy around expiry.

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Opening Bell 23.07.2014

Your world at 9am

world equities 2014-07-23

Equities

Major
DAX(DEU) +1.27%
CAC(FRA) +1.50%
UKX(GBR) +0.99%
NKY(JPN) +0.01%
SPX(USA) +0.50%
MINTs
JCI(IDN) +1.07%
INMEX(MEX) +0.27%
NGSEINDX(NGA) -0.28%
XU030(TUR) +0.32%
BRICS
IBOV(BRA) +0.61%
SHCOMP(CHN) +0.17%
NIFTY(IND) +1.09%
INDEXCF(RUS) +1.46%
TOP40(ZAF) +1.10%

Commodities

Energy
Brent Crude Oil -0.05%
Ethanol +0.00%
Heating Oil -0.02%
Natural Gas +0.00%
RBOB Gasoline -0.40%
WTI Crude Oil -0.36%
Metals
Copper +0.09%
Gold 100oz +0.00%
Palladium -0.07%
Platinum +0.15%
Silver 5000oz +0.00%

Currencies

USDEUR:-0.01% USDJPY:-0.03%

MINTs
USDIDR(IDN) -0.93%
USDMXN(MEX) -0.14%
USDNGN(NGA) -0.06%
USDTRY(TUR) -0.02%
BRICS
USDBRL(BRA) -0.37%
USDCNY(CHN) -0.07%
USDINR(IND) -0.09%
USDRUB(RUS) -0.71%
USDZAR(ZAF) -0.04%
Agricultural
Cattle +0.16%
Cocoa +0.46%
Coffee (Arabica) -2.31%
Coffee (Robusta) -1.63%
Corn +0.00%
Cotton +0.00%
Feeder Cattle +0.49%
Lean Hogs -0.92%
Lumber +0.00%
Orange Juice -0.13%
Soybean Meal -0.26%
Soybeans +0.00%
Sugar #11 -0.52%
Wheat +0.00%
White Sugar -0.79%

Must reads

Finance Minister Arun Jaitley: four public sector companies, which cannot be revived will be shut down. (TOI)

Saudi Arabia aims to allow direct foreign ownership of shares next year. (FT)

2010 was the year when the share of non-OECD countries in the global economy surpassed that of OECD countries, at purchasing power parity. Next step: boosting productivity. (FT)

Good luck!

Options Daily 23.07.2014

Nifty OI

nifty.puts.calls.JUL.2014-07-21.2014-07-22

Anomalous Option Trades

A sudden increase or decrease in open interest can signify informed buying/selling that you can potentially profit from. Option traders tend to ‘lead the pack’ and their actions can be used to gain insight into the consensus opinion of traders. This scan lists option trades that were one standard deviation away from the average over the last 20-days. Note that this scan maybe too noisy around expiry.

Download here.

Check out our Option Strategy Studio. One more reason to open a demat account with us.