The Japanese Yen ETF: A Lucrative Opportunity for Long-Term Investors

Posted on July 26, 2023 by Alan Solomon

This article delves into a comprehensive analysis of the Japanese Yen ETF, highlighting its advantages, risks, and market performance. The Japanese Yen ETF is an exchange-traded fund that tracks the Japanese yen’s value against other currencies, offering investors a convenient means to broaden their portfolios and safeguard against currency risk.

This financial instrument allows investors to gain exposure to the Japanese yen without directly trading it, making it an essential investment tool. Its history dates back to 2006 when WisdomTree Investments launched the first Japanese Yen ETF, and since then, various providers have introduced a range of Yen ETFs with different investment objectives and strategies, gaining popularity among investors seeking yen exposure.

In this thorough analysis, we aim to provide readers with a profound understanding of the Japanese Yen ETF’s potential role in their investment portfolios, emphasizing the benefits of diversification and protection against currency risk. While investing in Yen ETFs comes with some risks, such as market volatility and liquidity concerns, the potential rewards outweigh these risks, making Yen ETFs a valuable investment alternative. Investors should carefully assess the advantages and risks before making any investment decisions.

What is a Japanese Yen ETF?

A Japanese Yen ETF is an investment fund designed to mirror the Japanese yen’s performance relative to other major currencies like the US dollar, euro, and pound. It achieves this by investing in yen-denominated assets, including stocks, bonds, and currency futures.

The value of the Japanese Yen ETF fluctuates with changes in the yen’s exchange rate. When the yen appreciates against other currencies, the ETF’s value rises, and vice versa. These ETFs offer investors exposure to the Japanese yen without directly trading currency pairs and are traded on stock exchanges. Different types of Japanese Yen ETFs focus on various currency pairs, and they typically have low management fees, offering liquidity and convenience for gaining currency exposure.

How Japanese Yen ETFs Function

Investing in yen-denominated assets: Japanese Yen ETFs invest in assets like Japanese stocks, bonds, and currency futures denominated in yen. By holding a basket of yen-based assets, the ETF aims to track the yen’s performance.
Asset performance influences ETF value: The value of the Japanese Yen ETF is tied to the underlying yen-denominated assets’ performance. If these assets increase in value, the ETF’s share price rises, and if they decline, the share price falls. Hence, the ETF seeks to reflect yen returns by investing in yen-denominated assets.
Exposure to the yen: Investing in the Japanese Yen ETF grants investors exposure to the Japanese yen without directly purchasing yen or yen-denominated assets. The ETF’s value increases with yen appreciation against other currencies and decreases with yen depreciation, enabling investors to profit from yen price movements.
Management fees apply: Like other ETFs, Japanese Yen ETFs charge management fees for operating the fund, covering expenses such as trading the underlying assets, administration, and marketing. Investors need to consider these fees while evaluating different Japanese Yen ETF options.
Tradable like stocks: Japanese Yen ETFs are listed on stock exchanges, allowing easy buying and selling during trading, much like stocks. Investors can use market orders, limit orders, and other trading strategies to invest in Japanese Yen ETFs. Liquidity enables swift entry and exit from positions.

To sum up, Japanese Yen ETFs aim to provide investors exposure to the Japanese yen by investing in yen-denominated assets. By tracking the yen’s performance, the ETF facilitates profiting from yen price movements without directly trading the currency. Tradable like stocks, Japanese Yen ETFs offer investors convenience and liquidity.

Types of Japanese Yen ETFs

Japanese Yen ETFs come in various types, each with unique characteristics. Some track the yen’s performance against the US dollar, the world’s most widely traded currency, while others follow its performance against the euro, the second most widely traded currency. Additionally, Japanese Yen ETFs track the yen’s performance against other major currencies like the British pound, Swiss franc, and Australian dollar.

Advantages of Investing in Japanese Yen ETFs

Diversification: Japanese Yen ETFs provide exposure to the Japanese yen, diversifying an investment portfolio heavily weighted towards US dollar assets. This diversification reduces risk and volatility.
Currency risk hedge: Investing in Japanese Yen ETFs can hedge against currency risk for investors with exposure to Japanese stocks or bonds. Yen appreciation can offset losses from declining Japanese stock prices, reducing overall currency risk.
Potential for higher returns: Japanese Yen ETFs can generate substantial returns if the yen appreciates significantly against other major currencies like the US dollar. While currency movements are challenging to predict, a strengthening yen can lead to robust ETF gains.
Convenience and liquidity: Japanese Yen ETFs offer a convenient means to gain exposure to the Japanese yen without directly trading currency pairs or yen-denominated assets. Tradable on stock exchanges, they provide liquidity and flexibility for investors.
Low costs: Japanese Yen ETFs have low management fees, as they are passively managed funds that track yen performance. Their affordability makes them an appealing option for gaining currency exposure.
Transparency: Japanese Yen ETFs regularly disclose their holdings, enabling investors to understand the assets the ETF invests in to achieve its investment objective. Transparency clarifies ETF operations and return generation.

To conclude, the primary advantages of Japanese Yen ETFs are diversification benefits, currency risk hedging, potential for higher returns, convenience, low costs, and transparency. For investors seeking exposure to the Japanese yen, Japanese Yen ETFs present an attractive option to consider.

FAQs

Q: What is a Japanese Yen ETF? A: A Japanese Yen ETF is an exchange-traded fund that tracks the performance of the Japanese yen against other currencies, providing investors exposure to the yen’s value without trading it directly.

Q: How does a Japanese Yen ETF work? A: Japanese Yen ETFs invest in yen-denominated assets like stocks, bonds, and currency futures, aiming to mirror the yen’s performance. When the yen appreciates, the ETF’s value rises, and vice versa.

Q: Why invest in a Japanese Yen ETF? A: Investing in a Japanese Yen ETF offers diversification, a hedge against currency risk, potential for higher returns, convenience, low costs, and transparency.

Q: What are the advantages of a Japanese Yen ETF? A: The advantages include exposure to the Japanese yen, reduced risk and volatility through diversification, protection against currency risk, potential gains from yen appreciation, convenience, and affordability.

Q: How can I trade a Japanese Yen ETF? A: Japanese Yen ETFs are listed on stock exchanges and can be easily bought and sold like stocks, providing liquidity and flexibility for investors.

Q: Are there different types of Japanese Yen ETFs? A: Yes, Japanese Yen ETFs come in various types, tracking the yen’s performance against different major currencies like the US dollar, euro, pound, etc.

Q: What is the history of Japanese Yen ETFs? A: The first Japanese Yen ETF was launched in 2006 by WisdomTree Investments, and since then, several providers have introduced different Yen ETFs, gaining popularity among investors.

Q: What are the risks associated with Japanese Yen ETFs? A: Risks include market volatility, liquidity concerns, and uncertainty in currency movements. Investors should carefully assess these risks before making investment decisions.

Q: How can a Japanese Yen ETF diversify my portfolio? A: By providing exposure to the Japanese yen, a Yen ETF diversifies a portfolio primarily dominated by US dollar assets, reducing overall risk.

Q: Is a Japanese Yen ETF a good hedge against currency risk? A: Yes, investing in a Yen ETF can hedge against currency risk for investors with exposure to Japanese stocks or bonds, offsetting losses from declining Japanese stock prices.

Q: What role can a Japanese Yen ETF play in my investment strategy? A: A Japanese Yen ETF can offer portfolio diversification, a hedge against currency risk, and the potential for higher returns, depending on an investor’s specific investment objectives.

Q: How can I evaluate the performance of a Japanese Yen ETF? A: Investors can track the ETF’s performance by comparing its value with the yen’s exchange rate against other major currencies. Regularly reviewing the ETF’s holdings and analyzing its historical returns can also provide insights.

Q: Are Japanese Yen ETFs suitable for long-term investors? A: Yes, Japanese Yen ETFs can be suitable for long-term investors seeking to diversify their portfolios, hedge against currency risk, and potentially benefit from yen appreciation over time.

Q: What should I consider before investing in a Japanese Yen ETF? A: It is essential to carefully evaluate the advantages, risks, and costs associated with Japanese Yen ETFs, considering individual investment goals and risk tolerance before making any decisions.

Wall Street Cheat Sheet: Psychology of a Market Cycle

Posted on July 26, 2023 by Alan Solomon

The Dow Jones Utility Average (DJUA) functions as a crucial stock market index, monitoring the performance of 15 utility companies listed on the New York Stock Exchange (NYSE). These firms provide indispensable services like electricity, gas, and water, attracting conservative investors due to their steady and predictable revenues and profits. The DJUA serves as a benchmark for evaluating utility stocks.

The Wall Street Cheat Sheet unveils a Tactical Investor theory suggesting that the DJUA can serve as a timing indicator for the broader stock market. It leads the way both upwards and downwards, empowering investors to predict changes in the overall market. A rising DJUA foretells a period of market growth, while a decline indicates an impending market downturn.

Investors can utilize the DJUA as a contrarian indicator, capitalizing on market overreactions and identifying missed opportunities. If the DJUA peaks before the broader market, it’s a signal to reduce exposure and wait for a market correction before making fresh investments.

By coupling mass psychology and technical analysis, the DJUA becomes a formidable tool for investors. Understanding groupthink psychology and avoiding herd mentality can reveal long-term growth opportunities. Technical analysis identifies market trends and support/resistance levels.

Source: tradingview.com

Dow Jones Utility Average: What Can It Reveal?

Analyzing the above chart suggests the market is heading for another corrective wave, following historical patterns. Although markets may rally till the end of March, investors must brace for significant volatility. Our past predictions have proved accurate, forecasting a market rally in 2022 that extended into 2023.

To better comprehend this phenomenon, reference the Tactical Investor Alternative Dow theory.

Random Reflections: Navigating the Next Stock Market Crash

The MOAB (Mother of All Buys) Signal: An Unprecedented Occurrence

Recently, the MOAB signal reached a remarkable score of 99, a highly uncommon event unseen in decades. A score of 93 will confirm or mark the failure of the next market move, serving as an advanced warning of a potential head fake, possibly leading to a market breakdown.

Anticipate a rapid market decline, varying from moderate to severe, with a swift recovery expected. Instead of dwelling solely on the correction’s severity, focus on potential arising opportunities.

Market Activity and Bullish Bias

Over the past three weeks, the S&P 500 has shown minimal activity, with a net gain of less than 10 points by Sunday. While the market isn’t currently breaking out or breaking down, the bullish bias, persisting since the bottom established around July last year, suggests an eventual upside breakout.

Sentiment as an Uncertainty Gauge and a Long-Term Bullish Outlook

Sentiment has remained within an unprecedented significant trading range for 18 months, with bullish sentiment consistently trading below historical averages. This broad gauge of uncertainty hints at a long-term bullish outlook, implying the bull market may endure longer than anticipated, potentially exceeding the 2009 crash’s duration.

Market Behavior and the Expectations of Bears and Bulls

Typically, a strong rally followed by wide-ranging market trades entails a sharp pullback before a more robust rally. However, the current situation presents a notable deviation. The bears anticipate a strong pullback, while the bulls foresee a robust rally.

The best strategy is to mislead both groups, creating the illusion of a market breakout to new highs, followed by a sharp drop and an impression of a sell-off. However, the sell-off lacks traction, resulting in a medium sell-off, catching both groups by surprise. The projected roadmap outlines the expected market path until March 2024, incorporating support and resistance lines surpassing previous expectations.

Strategic Roadmap and Market Movements

Applying this roadmap suggests the SPX may reach new highs in 2023, surpassing 4200 and reaching the 4250 to 4300 range. Subsequently, expect a sharp reversal and drop to the 3600 to 3900 range, possibly with a low probability overshoot to 3450. This will be followed by a sharp upward reversal, a less sharp pullback, and the SPX gradually ascending to the 4400 to 4700 range.

Strong bullish signals will emerge during the aforementioned market actions, irrespective of their intensity.

Q: What is the Wall Street Cheat Sheet – Psychology of a Market Cycle? A: The Wall Street Cheat Sheet – Psychology of a Market Cycle refers to a comprehensive analysis of investor behavior and market trends to understand the dynamics of market cycles.

Q: How does the Dow Jones Utility Average (DJUA) function as a Timing Indicator for the Stock Market? A: The DJUA tracks the performance of 15 utility companies on the NYSE, which offer essential services. Its movements can predict changes in the overall market, indicating potential periods of growth or decline.

Q: Why are Utility Companies attractive to conservative investors? A: Utility companies have stable and predictable revenues, making them attractive to conservative investors seeking steady returns.

Q: How can investors use the DJUA as a Contrarian Indicator? A: Investors can exploit market overreactions by using the DJUA to identify opportunities that others might have missed. Peaks in the DJUA before the broader market can signal the need to reduce exposure and wait for corrections before making new investments.

Q: What is the Tactical Investor Alternative Dow theory? A: The Tactical Investor Alternative Dow theory is a unique approach to understanding market dynamics and making investment decisions based on a combination of market indicators and behavioral psychology.

Q: How can Mass Psychology and Technical Analysis be combined with the DJUA for better investments? A: Understanding groupthink psychology and avoiding herd mentality can help investors identify long-term growth opportunities. Technical analysis assists in identifying market trends and support/resistance levels.

Q: What does the MOAB Signal signify in the stock market context? A: The MOAB (Mother of All Buys) Signal is a significant indicator. A high score of 99 suggests an unprecedented occurrence, possibly leading to a market breakdown, indicating a rapid market decline followed by a swift recovery.

Q: Can market sentiment be used as a gauge for investment decisions? A: Yes, market sentiment can provide valuable insights into market uncertainty and investors’ outlook. It can influence long-term bullish or bearish trends.

Q: How can investors navigate market volatility and corrections effectively? A: Investors can navigate market volatility by staying informed about market indicators, conducting thorough analysis, and focusing on long-term investment opportunities.

Q: What are the expected market movements according to the Strategic Roadmap? A: The Strategic Roadmap suggests potential market highs in 2023, followed by sharp reversals and gradual upward momentum, with strong bullish signals emerging during market actions.

Deceptive Tactics: Techniques of Psychological Manipulation

Posted on July 4, 2023 by Alan Solomon

Perception plays a crucial role in how we interpret information and the data we are exposed to shapes our perception. It is important to question whether the information we receive is manipulated, as this can distort the picture we form in our minds. Wall Street and the media are experts at employing these deceptive tactics to create cycles of boom and bust and manipulate public perception.

The process of psychological manipulation begins as soon as a child enters the public education system, effectively brainwashing the majority of individuals. Only a small fraction, around 10%, manage to escape this influence, but their impact on effecting real change is limited since they lack positions of power. Media outlets, acting as mass manipulators, constantly bombard us with repeated stories to implant desired perceptions in unsuspecting minds.

This manipulation becomes ingrained in our psyche, leading us to believe that these thoughts are our own when, in reality, they have been planted. This is why there is a deliberate effort to suppress homeschooling, as it promotes independent thinking, while government schooling suppresses free thought. Germany even considers homeschooling a crime, and the general population accepts this without resistance.

Currently, there is a shift in perception, with the masses becoming more optimistic. If this trend continues, we can expect the markets to rally further. Although the market rally has been artificially induced, there is a genuine bullish signal with both the Dow and SPX trading at new highs. A true bull market occurs when old highs are surpassed, and historically, this has led to significant market rallies.

Truth and lies are subjective, based on individual perceptions. Manipulating perception allows for the creation of any desired reality or alternate reality.

The recent breakout to new market highs has indeed proven to be a bullish signal. It was a challenging call to make due to the rapid market rise, but focusing on the trend rather than distractions enabled accurate assessment.

Now that the Federal Reserve has realized how easily they can manipulate reality, expect the level of brainwashing to increase exponentially. Those who rely on common sense might feel like outsiders, as the majority will operate in an alternate reality.

Psychological manipulation techniques

Social influence is a form of persuasion that aims to alter behavior or perception through indirect and subtle tactics. While this can be used positively to encourage beneficial changes, it can also become manipulative and cunning when the influencer’s interests take precedence over others.

Psychological manipulation within education is recognized by the US Department of Education and various national organizations. The Common Core standards, for example, go beyond academics and encompass social-emotional learning and noncognitive skills.

Conclusion

Psychological manipulation techniques are a powerful tool that can shape perceptions and behaviours. It is prevalent in various domains, including education and media, where manipulators seek to influence individuals for their own gain. While social influence itself is not inherently negative, it is crucial to recognize manipulative tactics, exercise critical thinking, and make informed choices about the information we consume. By promoting awareness and understanding, we can strive for a balanced and independent perspective.

Child hunger: A crisis of Epic proportions

Posted on May 8, 2023 by Alan Solomon

Child hunger is an alarming global issue that continues to worsen at an unprecedented rate, with millions of children suffering from malnutrition and starvation amidst an abundance of food and wealth. This harrowing atrocity is further exacerbated by misplaced priorities, such as the exorbitant military spending of developed countries like the United States. This essay explores the prevalence of child hunger, the paradox of food waste, and the urgent need for a shift in global priorities to address this humanitarian crisis.

The Prevalence of Child Hunger: A Startling Reality

As of 2022, approximately 811 million people worldwide suffer from chronic hunger, with 50 million facing emergency levels of hunger across 45 countries. This dire situation has escalated so rapidly in recent years that numerous countries are now at risk of famine. Among the most vulnerable to hunger are children, with the Food and Agriculture Organization (FAO) estimating that 45 million children under the age of five suffer from wasting, increasing their risk of mortality by up to 12 times. Additionally, 149 million children under five experience stunting due to inadequate nutrition and lack of essential nutrients.

The Paradox of Food Waste: An Appalling Injustice

It is a distressing fact that while millions of children go hungry, around a third of the food produced globally for human consumption is wasted or lost, amounting to approximately 1.3 billion tons per year. Food waste occurs at various stages of the supply chain, from production and harvest to storage, processing, and consumption. In developed countries, a significant portion of food waste occurs at the retail and consumer levels due to stringent quality standards and over-purchasing.

Instead of destroying excess food and agricultural produce, efforts should be directed towards redistributing these resources to the hungry and impoverished. Implementing more efficient food distribution systems, reducing waste, and encouraging sustainable consumption practices could help alleviate child hunger worldwide.

Misplaced Priorities and Wasted Resources: A Call for Change

The developed world, particularly the United States, has often prioritized military spending and engaging in conflicts over addressing the pressing issue of child hunger. In 2020, the US military budget amounted to a staggering $740.5 billion, which dwarfed the $9.5 billion allocated to global health programs, including those tackling hunger and malnutrition. These figures reveal a glaring disparity in resource allocation and a lack of political will to address the plight of starving children.

The Impact of Hunger on Women and Children

Hunger disproportionately affects women and children, with over 31% of women worldwide facing hunger compared to 27% of men. This gender gap has intensified since the COVID-19 pandemic. The FAO estimates that 2.3 billion people, or roughly 29% of the global population, experience less extreme but still dangerous levels of food insecurity.

Volatility of the stock market: Adapt or Lose

Posted on April 17, 2023 by Alan Solomon

The aptitude for identifying opportunity within disorder presents a highly valuable skill that can empower individuals to prosper in tumultuous times, particularly in the mercurial stock market. Although seemingly paradoxical, historical evidence suggests that periods of turbulence often beget monumental advancements. Indeed, some of the most distinguished individuals in history have been those who perceived opportunities, where others solely observed chaos and desolation.

Exhibiting Equanimity and Adaptability in the Stock Market

A critical factor in discovering opportunity amid the capricious stock market lies in maintaining composure and clear-headedness. Amidst the widespread panic, it is prudent to remain poised and rationally assess the situation. This approach enables well-informed decisions, facilitating positive advancement even in the face of market turbulence. Additionally, embracing calculated risks and venturing beyond one’s comfort zone is essential for capitalizing on available opportunities.

Another salient consideration is adaptability in the face of stock market fluctuations. Rapid acclimatization grants a distinct advantage amidst uncertainty and perpetual change. Instead of resisting alterations, individuals should be amenable to new experiences, requiring a cognitive shift and relinquishing entrenched habits and thought patterns. This adaptability is indispensable for achieving success amidst volatility.

Transforming Adversity into Opportunity in the Stock Market

The most accomplished investors throughout history have successfully transmuted adversity into opportunity, utilizing challenges as catalysts for success. Emulating their example by remaining composed, and adaptable, and seizing opportunities in the volatile stock market is a viable strategy.

The Efficacy of the Contrarian Strategy in the Stock Market

The Contrarian Strategy, alternatively known as the Overreaction Hypothesis, posits that investors may profit by deviating from collective sentiment.

Conclusion

The Contrarian Strategy, also known as the Overreaction Hypothesis, emphasizes that investors can profit by going against the crowd, aligning with the principles of Volatility Trading Strategies. These strategies capitalize on market fluctuations and extreme sentiments to identify investment opportunities. Mastering the art of recognizing opportunities amidst market volatility and chaos is a crucial skill that enables investors to flourish during challenging times. By maintaining equanimity, exhibiting adaptability, and incorporating the Contrarian Strategy into their investment approach, investors can harness market volatility to yield higher long-term returns.

Mass Psychology plays a significant role in market volatility, with collective panic and elevated fear levels driving markets to become increasingly volatile. By combining an understanding of Mass Psychology with market volatility, investors can seize opportunities at favorable prices and capitalize on prospects that others might disregard.

Numerous successful investors have employed this approach, purchasing when others are divesting and liquidating when others are acquiring. By deviating from the consensus, these investors have consistently generated substantial returns over extended periods.

Ultimately, embracing chaos and volatility as opportunities for growth rather than obstacles is key to thriving in the capricious stock market. By fostering mental resilience, adaptability, and strategic thinking, investors can transform adversity into a springboard for success, positioning themselves advantageously in the ever-evolving financial landscape.

War of Attrition

Posted on April 17, 2023 by Alan Solomon

Investing in the stock market can be a game of patience and perseverance, often likened to a war of attrition. In this war, investors must have the fortitude to withstand market fluctuations, remain focused on their long-term goals, and resist the urge to make impulsive decisions based on short-term market movements.

The term “war of attrition” originates from military history, where it refers to a prolonged conflict characterised by continuous small-scale battles designed to wear down the enemy. In the world of investing, this war of attrition can be seen in the daily fluctuations of the stock market, with investors constantly fighting to maintain their positions and fend off market downturns.

To win this war, investors must be prepared to make strategic decisions and take calculated risks. They must have a clear understanding of their investment objectives, risk tolerance, and the market in which they are investing. Additionally, they must have a disciplined approach to their investment strategy and resist the temptation to deviate from it in response to market volatility.

One key strategy for winning this war is to focus on long-term investments rather than trying to time the market or make quick profits. By investing in a diversified portfolio of quality companies and holding those investments over time, investors can ride out short-term market fluctuations and benefit from the long-term growth potential of the market.

Another strategy is to remain patient and avoid making rash decisions based on short-term market movements. The market is inherently volatile, and investors who panic and sell during a downturn risk missing out on potential gains when the market eventually rebounds.

Ultimately, the war of attrition in investing is a battle between fear and greed. Fear can cause investors to sell in a panic, while greed can lead them to make impulsive decisions based on the promise of quick profits. Investors who remain focused on their long-term goals, maintain a disciplined approach, and avoid succumbing to fear and greed are the ones who are most likely to come out on top in this war.

Investing in the markets is a war of attrition that requires patience, discipline, and a long-term perspective. By understanding the market, maintaining a diversified portfolio, and staying focused on their goals, investors can successfully navigate the ups and downs of the market and emerge victorious in the end.

Why the Crowd always losses?

Posted on February 27, 2023 by Alan Solomon

One of the key factors contributing to the crowd’s losses in the stock market is the influence of emotions. A growing body of research in behavioural finance has shown that emotions, such as fear and greed, can have a significant impact on investment decisions. For example, when the market drops, fear and panic can lead investors to sell their holdings and lock in their losses. Conversely, when the market rises, greed can drive investors to pour money into the market, often buying at the top and missing out on future gains. This emotional cycle can result in poor investment decisions and has been shown to be one of the key reasons why the crowd often loses in the stock market.

In addition to emotions, misinformation and groupthink also play a role in the crowd’s losses in the stock market. A recent study by the University of California, Los Angeles, found that many investors rely on financial advisors who may not have their best interests at heart. This can lead to poor investment decisions and missed opportunities for growth. Furthermore, the media often sensationalizes market events, which can lead to widespread confusion and misunderstandings among investors.

The herd mentality, a common phenomenon in the stock market, is also a factor that contributes to the crowd’s losses. This refers to the tendency of investors to follow the crowd, even if it is not in their best interest. Research has shown that the herd mentality often leads to buying high and selling low, as investors follow the crowd instead of their own instincts and analysis. This is particularly problematic when it comes to “hot” stocks or market sectors, which can quickly become overcrowded and lead to a market correction.

In contrast, contrarian investors take a different approach to the stock market. They are willing to go against the crowd and invest in stocks that are out of favour or undervalued. A recent study by the University of Chicago Booth School of Business found that contrarian investors outperformed the market by 2.5% per year over a 20-year period. This is due to their willingness to rely on a thorough analysis of a company’s financials and growth prospects, rather than being swayed by emotions or groupthink.

Furthermore, contrarian investors are patient and willing to hold onto their investments for the long term. A study by Vanguard found that a long-term investment approach can result in higher returns and lower volatility, compared to a short-term investment strategy. This long-term focus allows contrarian investors to ride out market corrections and reap the benefits of a well-diversified portfolio over time.

In conclusion, the crowd often loses in the stock market due to the influence of emotions, misinformation, and groupthink. These factors lead to poor investment decisions and missed opportunities for growth. In contrast, contrarian investors, who rely on informed analysis and a long-term focus, have been shown to outperform the market. The key to success in the stock market is to have a well-diversified portfolio, be patient, disciplined, and informed in your investment decisions, and avoid being swayed by emotions, misinformation, or groupthink.

Denmark finally passes Law banning both Burqa and Niqab

Posted on February 25, 2021 by Alan Solomon

Denmark has joined several other European countries in banning garments that cover the face, including Islamic veils such as the niqab and burqa, in a move condemned by human rights campaigners as “neither necessary nor proportionate”. In a 75-30 vote with 74 absentees on Thursday, Danish lawmakers approved the law presented by the centre-right governing coalition. The government said it is not aimed at any religions and does not ban headscarves, turbans or the traditional Jewish skull cap.

But the law is popularly known as the “burqa ban” and is mostly seen as being directed at the dress worn by some Muslim women. Few Muslim women in Denmark wear full-face veils.The justice minister, Søren Pape Poulsen, said it would be up to police officers to use their common sense when they see people violating the law, which comes into force on 1 August.The legislation allows people to cover their face when there is a “recognisable purpose” such as cold weather or complying with other legal requirements, for example using motorcycle helmets under Danish traffic rules.

Those violating the law risk a fine of 1,000 kroner (£118). Repeat offenders could be fined up to 10,000 kroner or jailed for up to six months. Austria, France and Belgium have similar laws.

Gauri van Gulik, Amnesty International’s Europe director, said of the Danish decision: “All women should be free to dress as they please and to wear clothing that expresses their identity or beliefs. This ban will have a particularly negative impact on Muslim women who choose to wear the niqab or burqa. “While some specific restrictions on the wearing of full-face veils for the purposes of public safety may be legitimate, this blanket ban is neither necessary nor proportionate and violates the rights to freedom of expression and religion. Full Story

Roughly two hours after commenting on the previous story, this news article surfaced. If you have ever been to Denmark or had Danish friends, you will understand how easy going and nice these individuals (generally) are. http://studyindenmark.dk/why-denmark/quality-of-life-1/what-are-the-danes-like

Hence, when you factor this into the equation what’s taking place now is occurring at a very fast rate. The statement we boldfaced is very telling. On a scale of 1-10, we are between 3 and 4, so this trend has plenty of room to run before it tops out. In other words, what’s taking place will appear mild in the future?

Sweden Democrats the Anti-immigration party set to score big in Upcoming elections

Posted on February 24, 2021 by Alan Solomon

STOCKHOLM (Reuters) – Sweden’s top three parties are running almost level four months ahead of a general election, with the anti-immigration Sweden Democrats polling a record 20 percent, according to poll in daily Dagens Nyheter. Support for the Sweden Democrats has surged since they first won seats in parliament in 2010, with the party on track to record its best ever election result after getting 13 percent in 2014. A surge in asylum numbers in 2015, when Sweden took in 160,000 refugees, has heightened worries about a creaking welfare state and that crime is increasing, boosting the party, which wants to close Sweden’s doors and crack down on gangs. The ISPOS poll put the Sweden Democrats hot on the heels of the governing Social Democrats, who got 24 percent, and the biggest opposition party, the center-right Moderates, who scored 22 percent.

At the last election the center-left Social Democrats got 31 percent and the Moderates 23.3 percent. The current government is a minority coalition of the Social Democrats and Greens. They are supported in parliament by the Left Party. Together, the parties polled 37 percent. The Moderates, Centre, Christian Democrats and Liberals cooperate and will fight the election as a group. They polled 39 percent Full Story

The Viking blood still runs strong in many of the Scandinavian nations and while time has cultured the fierce Vikings, the current state of affairs is starting to stir things up and as this trend gathers momentum we fear that these once quite people will reveal a side of them that the world has not seen for a long time. The Vikings were extremely ruthless and note that the Russians also have Viking blood. We mention this because it takes a lot to provoke the Russian bear, but once provoked the bear will not rest until it has destroyed its enemy. Vikings were twice as volatile; they were not afraid to fight; they actually relished a good and bloody fight. Given the strength of this trend there is a fairly high probability that some leader will emerge in this area with strong Viking roots and start talking about days gone by; if this comes to pass, all hell could break loose. The main target of this rage will be Muslim immigrants as they are being labelled as invaders with increasing frequency and the attacks are gradually becoming more violent.

If someone comes to power and starts talking about how strong the Vikings were and how the Norwegians, Danes, etc. need to stand up to the invaders (this is the term that is often used today), it will be an indication that the above outlook is coming to fruition. The rhetoric at first will be rather mild, but don’t confuse this mild rhetoric for inaction. Focus on whether the Viking factor is mentioned, if it is, then the odds of it turning violent are quite high.

We are not rooting for the above outcome, nor do we favour such an outcome but we would be doing our subscribers a disservice if we did not talk about a potential trend that appears to be gaining momentum.

Deutsche Bank set to cut 10K Jobs to reduce costs

Posted on February 23, 2021 by Alan Solomon

The Journal, citing unnamed sources, reported that job cuts were likely to extend into 2019.Separately, Bloomberg News reported the bank was planning to withdraw from a number of equities markets across the globe.

The Bloomberg report, which also cited unidentified people, said that Deutsche would sharply scale back its presence in the United States, and had started cutting activities in Central Europe, the Middle East, and Africa. Deutsche Bank, which holds its annual shareholder meeting on Thursday, declined to comment. The loss-making bank said last month that it was planning to scale back its global investment bank and that equities was one of the areas it was looking at for possible cuts.A person familiar with the matter told Reuters last month Deutsche Bank was expected to cut around 1,000 jobs or 10 percent of its workforce in the United States.

It has also said that it would cut back U.S. bonds trading and the business that services hedge funds.The bank has been expected to announce further details of its reorganisation plans ahead of its AGM on Thursday. hareholders, fed up with a languishing share price and dwindling revenue, will call on the bank’s management to speed up the recovery process at the AGM.

Hans-Christoph Hirt, head of shareholder adviser Hermes EOS at Hermes Investment Management, told Reuters on Wednesday he wanted to see a “credible strategy with achievable targets.” Full story

Now they are firing to balance the books, in the near future they will be firing to get rid of the “expensive human element”. Sadly most of today’s high paid individuals get way too much for doing way too little, and AI is going to dramatically alter the landscape. Remember the equation must always balance, and the more skewed things become the stronger the blowback as the market moves back to the point of equilibrium.

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