Raoul Pal: “The Era Of Doing Nothing And Getting Paid For It Is Over”

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By Chris at http://j.mp/22bDW4a

Today’s podcast is a little different. I speak with Raoul Pal and we cover a number of topics, running from one to another as they crop up. I hope you’ll enjoy it as much as I always enjoy speaking with Raoul.

For those of you who’ve never heard of Raoul – he is first and foremost one of the most congenial, open minded, and thoughtful guys you could ever have the pleasure of discussing the truly mind boggling and fascinating world of global macroeconomics with.

He’s also a world renowned global macro investor, an investment strategist, economic historian, traveler, rum drinker, and co-founder of Real Vision TV, together with Grant Williams who I spoke with some time ago. Here’s some of the topics Raoul and I cover in the podcast:

  • The end of financialization of the economy. The era of doing nothing and get paid for it is over. Why Raoul thinks that’s a good thing (especially if you’re an entrepreneur) and he also lays out the way to profit from it.
  • Why markets around the world are so fragile today and why the investment environment is so dangerous, especially for less liquid investments.
  • Helicopter money – as Raoul said, “We’re getting there, it just depends which format we’re going to get.”
  • Why debt is like 700 beers (plus Raoul’s take on the possibility of a debt jubilee).
  • Which chart is showing one of the biggest head and shoulders tops in history.
  • How Raoul looks at Bitcoin and why he thinks Bitcoin has a huge runway (but with one important caveat)… and why – on the other side – he doesn’t see a lot more runway left in startup investing, or as Raoul calls it, “lottery ticket investing”.
  • Why venture capital is, in fact, in a “terrifying situation”.
  • And much more.

Raoul Pal Podcast

Like 6 other investing superstars, Raoul is also bullish on gold. I think it’s one of the easiest and safest bets in today’s macro environment.

I hope you enjoy it. Please share this with all your friends and enemies alike and let me know your thoughts by leaving a comment on the site.  

– Chris

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First published here: http://j.mp/2arSxsn

“Could Not Invent A More Bullish Story For Gold Bullion”

Tags

, , , , , , , ,

Newstalk’s Nick Bullman interviewed GoldCore’s Mark O’Byrne on “Down To Business” at 0643 this morning.newstalkradioThe interview on Breakfast (06:30 – 09:00) begins in the 14th minute (Part I) and can be listened to here

Topics covered were:
– Gold’s performance so far in 2016 – +25% in USD, +25% in EUR and +40% in GBP
– Gold acting as a hedge against fiat currencies
– “Could not invent a more bullish story for gold”
– Economic recoveries are tentative and leading to ultra loose monetary policies
– A lot of strong fundamentals including negative interest rates, polarisation of politics and “Clash of Civilisations”
– Short term risks with FOMC, Yellen and options expiration – may create short term risks
– Gold can rise even if dollar continues to rise
– Gold mining shares are up 80%. Are they over valued?
– Mining shares are more high risk and volatile than gold
– Allocation of 20% to gold merited given risks
– “Most of new buying from pension funds and companies”
–  Avoid ETFs and paper gold – Have absolute legal title to physical gold

The interview can be listened to here

7RealRisksBanner

 

Gold and Silver Bullion – News and Prices

Gold edges up as dollar slips ahead of Fed meet (Reuters)

Gold Gains as Dollar Dips Before Fed, Official Sees BOE Stimulus (Bloomberg)

Gold ends lower as expectations grow for interest-rate hike later this year (Marketwatch)

Top credit ratings agency declares European Union “unsustainable” (Cityam)

Wall St. declines as earnings take center stage (Reuters)

SWOT Analysis: Is There Increased Political Risk Building into the Gold Market? (Goldseek)

An ‘insane’ number of catalysts are poised to roil vulnerable markets this week (Marketwatch)

Brexit and the City (Moneyweek)

The Brexit vote is over and the UK is fine – let’s stop the negativity (Telegraph)

“Central Bankers Are Killing Capitalism” Odey Warns, Moving Politics “Fast To Extremes” (Zerohedge)

Gold Prices (LBMA AM)

26 July: USD 1,321.25, EUR 1,199.563 & GBP 1,006.396 per ounce
25 July: USD 1,315.00, EUR 1,196.913 & GBP 1,000.321 per ounce
22 July: USD 1,323.20, EUR 1,199.216 & GBP 1,005.103 per ounce
21 July: USD 1,322.00, EUR 1,199.318 & GBP 1,000.754 per ounce
20 July: USD 1,325.60, EUR 1,204.308 & GBP 1,005.865 per ounce
19 July: USD 1,332.20, EUR 1,203.376 & GBP 1,009.042 per ounce
18 July: USD 1,326.15, EUR 1,200.298 & GBP 1,000.050 per ounce

Silver Prices (LBMA)

26 July: USD 19.68, EUR 17.89 & GBP 15.00 per ounce
25 July: USD 19.41, EUR 17.66 & GBP 14.77 per ounce
22 July: USD 19.70, EUR 17.87 & GBP 15.03 per ounce
21 July: USD 19.34, EUR 17.55 & GBP 14.66 per ounce
20 July: USD 19.70, EUR 17.88 & GBP 14.95 per ounce
19 July: USD 19.99, EUR 18.07 & GBP 15.18 per ounce
18 July: USD 19.72, EUR 17.83 & GBP 14.89 per ounce


Recent Market Updates

– Gold In Bull Market – “Every Reason For It To Continue” – Frisby In Money Week
– Is Gold Set To Hit $1,500 Per Ounce?
– Why Italy’s bank crisis could be a ‘ticking time bomb’
– Gold Holds Near Two-Week Low as Risk Appetite Rises on U.S. Data
– IMF Scraps Forecast for Global-Growth Pickup on Brexit Fallout
– Gold, Trump and Rates: Bank That Foresaw Rally Flags $1,500
– Gold Lower After Central Bank’s Surprise Move
– “We Are On the Cusp of an Explosion in the Silver Price” – John Embry

– Stocks Rally – Is Brexit Systemic Risks Contained?
– Britain has a new prime minister – here’s what that means for you
– Metals Caught Between Global Gloom, U.S. Job Gains as Gold Slips
– Central Bank Resumes Monthly Gold Buying in Bid to Diversify Reserves

First published here: http://j.mp/2aqDXQ9

“Could Not Invent A More Bullish Story For Gold Bullion”

Tags

, , , , , , , ,

Newstalk’s Nick Bullman interviewed GoldCore’s Mark O’Byrne on “Down To Business” at 0643 this morning.newstalkradioThe interview on Breakfast (06:30 – 09:00) begins in the 14th minute (Part I) and can be listened to here

Topics covered were:
– Gold’s performance so far in 2016 – +25% in USD, +25% in EUR and +40% in GBP
– Gold acting as a hedge against fiat currencies
– “Could not invent a more bullish story for gold”
– Economic recoveries are tentative and leading to ultra loose monetary policies
– A lot of strong fundamentals including negative interest rates, polarisation of politics and “Clash of Civilisations”
– Short term risks with FOMC, Yellen and options expiration – may create short term risks
– Gold can rise even if dollar continues to rise
– Gold mining shares are up 80%. Are they over valued?
– Mining shares are more high risk and volatile than gold
– Allocation of 20% to gold merited given risks
– “Most of new buying from pension funds and companies”
–  Avoid ETFs and paper gold – Have absolute legal title to physical gold

The interview can be listened to here

7RealRisksBanner

 

Gold and Silver Bullion – News and Prices

Gold edges up as dollar slips ahead of Fed meet (Reuters)

Gold Gains as Dollar Dips Before Fed, Official Sees BOE Stimulus (Bloomberg)

Gold ends lower as expectations grow for interest-rate hike later this year (Marketwatch)

Top credit ratings agency declares European Union “unsustainable” (Cityam)

Wall St. declines as earnings take center stage (Reuters)

SWOT Analysis: Is There Increased Political Risk Building into the Gold Market? (Goldseek)

An ‘insane’ number of catalysts are poised to roil vulnerable markets this week (Marketwatch)

Brexit and the City (Moneyweek)

The Brexit vote is over and the UK is fine – let’s stop the negativity (Telegraph)

“Central Bankers Are Killing Capitalism” Odey Warns, Moving Politics “Fast To Extremes” (Zerohedge)

Gold Prices (LBMA AM)

26 July: USD 1,321.25, EUR 1,199.563 & GBP 1,006.396 per ounce
25 July: USD 1,315.00, EUR 1,196.913 & GBP 1,000.321 per ounce
22 July: USD 1,323.20, EUR 1,199.216 & GBP 1,005.103 per ounce
21 July: USD 1,322.00, EUR 1,199.318 & GBP 1,000.754 per ounce
20 July: USD 1,325.60, EUR 1,204.308 & GBP 1,005.865 per ounce
19 July: USD 1,332.20, EUR 1,203.376 & GBP 1,009.042 per ounce
18 July: USD 1,326.15, EUR 1,200.298 & GBP 1,000.050 per ounce

Silver Prices (LBMA)

26 July: USD 19.68, EUR 17.89 & GBP 15.00 per ounce
25 July: USD 19.41, EUR 17.66 & GBP 14.77 per ounce
22 July: USD 19.70, EUR 17.87 & GBP 15.03 per ounce
21 July: USD 19.34, EUR 17.55 & GBP 14.66 per ounce
20 July: USD 19.70, EUR 17.88 & GBP 14.95 per ounce
19 July: USD 19.99, EUR 18.07 & GBP 15.18 per ounce
18 July: USD 19.72, EUR 17.83 & GBP 14.89 per ounce


Recent Market Updates

– Gold In Bull Market – “Every Reason For It To Continue” – Frisby In Money Week
– Is Gold Set To Hit $1,500 Per Ounce?
– Why Italy’s bank crisis could be a ‘ticking time bomb’
– Gold Holds Near Two-Week Low as Risk Appetite Rises on U.S. Data
– IMF Scraps Forecast for Global-Growth Pickup on Brexit Fallout
– Gold, Trump and Rates: Bank That Foresaw Rally Flags $1,500
– Gold Lower After Central Bank’s Surprise Move
– “We Are On the Cusp of an Explosion in the Silver Price” – John Embry

– Stocks Rally – Is Brexit Systemic Risks Contained?
– Britain has a new prime minister – here’s what that means for you
– Metals Caught Between Global Gloom, U.S. Job Gains as Gold Slips
– Central Bank Resumes Monthly Gold Buying in Bid to Diversify Reserves

First published here: http://j.mp/2aqDXQ9

“Could Not Invent A More Bullish Story For Gold Bullion”

Tags

, , , , , , , ,

Newstalk’s Nick Bullman interviewed GoldCore’s Mark O’Byrne on “Down To Business” at 0643 this morning.newstalkradioThe interview on Breakfast (06:30 – 09:00) begins in the 14th minute (Part I) and can be listened to here

Topics covered were:
– Gold’s performance so far in 2016 – +25% in USD, +25% in EUR and +40% in GBP
– Gold acting as a hedge against fiat currencies
– “Could not invent a more bullish story for gold”
– Economic recoveries are tentative and leading to ultra loose monetary policies
– A lot of strong fundamentals including negative interest rates, polarisation of politics and “Clash of Civilisations”
– Short term risks with FOMC, Yellen and options expiration – may create short term risks
– Gold can rise even if dollar continues to rise
– Gold mining shares are up 80%. Are they over valued?
– Mining shares are more high risk and volatile than gold
– Allocation of 20% to gold merited given risks
– “Most of new buying from pension funds and companies”
–  Avoid ETFs and paper gold – Have absolute legal title to physical gold

The interview can be listened to here

7RealRisksBanner

 

Gold and Silver Bullion – News and Prices

Gold edges up as dollar slips ahead of Fed meet (Reuters)

Gold Gains as Dollar Dips Before Fed, Official Sees BOE Stimulus (Bloomberg)

Gold ends lower as expectations grow for interest-rate hike later this year (Marketwatch)

Top credit ratings agency declares European Union “unsustainable” (Cityam)

Wall St. declines as earnings take center stage (Reuters)

SWOT Analysis: Is There Increased Political Risk Building into the Gold Market? (Goldseek)

An ‘insane’ number of catalysts are poised to roil vulnerable markets this week (Marketwatch)

Brexit and the City (Moneyweek)

The Brexit vote is over and the UK is fine – let’s stop the negativity (Telegraph)

“Central Bankers Are Killing Capitalism” Odey Warns, Moving Politics “Fast To Extremes” (Zerohedge)

Gold Prices (LBMA AM)

26 July: USD 1,321.25, EUR 1,199.563 & GBP 1,006.396 per ounce
25 July: USD 1,315.00, EUR 1,196.913 & GBP 1,000.321 per ounce
22 July: USD 1,323.20, EUR 1,199.216 & GBP 1,005.103 per ounce
21 July: USD 1,322.00, EUR 1,199.318 & GBP 1,000.754 per ounce
20 July: USD 1,325.60, EUR 1,204.308 & GBP 1,005.865 per ounce
19 July: USD 1,332.20, EUR 1,203.376 & GBP 1,009.042 per ounce
18 July: USD 1,326.15, EUR 1,200.298 & GBP 1,000.050 per ounce

Silver Prices (LBMA)

26 July: USD 19.68, EUR 17.89 & GBP 15.00 per ounce
25 July: USD 19.41, EUR 17.66 & GBP 14.77 per ounce
22 July: USD 19.70, EUR 17.87 & GBP 15.03 per ounce
21 July: USD 19.34, EUR 17.55 & GBP 14.66 per ounce
20 July: USD 19.70, EUR 17.88 & GBP 14.95 per ounce
19 July: USD 19.99, EUR 18.07 & GBP 15.18 per ounce
18 July: USD 19.72, EUR 17.83 & GBP 14.89 per ounce


Recent Market Updates

– Gold In Bull Market – “Every Reason For It To Continue” – Frisby In Money Week
– Is Gold Set To Hit $1,500 Per Ounce?
– Why Italy’s bank crisis could be a ‘ticking time bomb’
– Gold Holds Near Two-Week Low as Risk Appetite Rises on U.S. Data
– IMF Scraps Forecast for Global-Growth Pickup on Brexit Fallout
– Gold, Trump and Rates: Bank That Foresaw Rally Flags $1,500
– Gold Lower After Central Bank’s Surprise Move
– “We Are On the Cusp of an Explosion in the Silver Price” – John Embry

– Stocks Rally – Is Brexit Systemic Risks Contained?
– Britain has a new prime minister – here’s what that means for you
– Metals Caught Between Global Gloom, U.S. Job Gains as Gold Slips
– Central Bank Resumes Monthly Gold Buying in Bid to Diversify Reserves

First published here: http://j.mp/2aqDXQ9

“Could Not Invent A More Bullish Story For Gold Bullion”

Tags

, , , , , , , ,

Newstalk’s Nick Bullman interviewed GoldCore’s Mark O’Byrne on “Down To Business” at 0643 this morning.newstalkradioThe interview on Breakfast (06:30 – 09:00) begins in the 14th minute (Part I) and can be listened to here

Topics covered were:
– Gold’s performance so far in 2016 – +25% in USD, +25% in EUR and +40% in GBP
– Gold acting as a hedge against fiat currencies
– “Could not invent a more bullish story for gold”
– Economic recoveries are tentative and leading to ultra loose monetary policies
– A lot of strong fundamentals including negative interest rates, polarisation of politics and “Clash of Civilisations”
– Short term risks with FOMC, Yellen and options expiration – may create short term risks
– Gold can rise even if dollar continues to rise
– Gold mining shares are up 80%. Are they over valued?
– Mining shares are more high risk and volatile than gold
– Allocation of 20% to gold merited given risks
– “Most of new buying from pension funds and companies”
–  Avoid ETFs and paper gold – Have absolute legal title to physical gold

The interview can be listened to here

7RealRisksBanner

 

Gold and Silver Bullion – News and Prices

Gold edges up as dollar slips ahead of Fed meet (Reuters)

Gold Gains as Dollar Dips Before Fed, Official Sees BOE Stimulus (Bloomberg)

Gold ends lower as expectations grow for interest-rate hike later this year (Marketwatch)

Top credit ratings agency declares European Union “unsustainable” (Cityam)

Wall St. declines as earnings take center stage (Reuters)

SWOT Analysis: Is There Increased Political Risk Building into the Gold Market? (Goldseek)

An ‘insane’ number of catalysts are poised to roil vulnerable markets this week (Marketwatch)

Brexit and the City (Moneyweek)

The Brexit vote is over and the UK is fine – let’s stop the negativity (Telegraph)

“Central Bankers Are Killing Capitalism” Odey Warns, Moving Politics “Fast To Extremes” (Zerohedge)

Gold Prices (LBMA AM)

26 July: USD 1,321.25, EUR 1,199.563 & GBP 1,006.396 per ounce
25 July: USD 1,315.00, EUR 1,196.913 & GBP 1,000.321 per ounce
22 July: USD 1,323.20, EUR 1,199.216 & GBP 1,005.103 per ounce
21 July: USD 1,322.00, EUR 1,199.318 & GBP 1,000.754 per ounce
20 July: USD 1,325.60, EUR 1,204.308 & GBP 1,005.865 per ounce
19 July: USD 1,332.20, EUR 1,203.376 & GBP 1,009.042 per ounce
18 July: USD 1,326.15, EUR 1,200.298 & GBP 1,000.050 per ounce

Silver Prices (LBMA)

26 July: USD 19.68, EUR 17.89 & GBP 15.00 per ounce
25 July: USD 19.41, EUR 17.66 & GBP 14.77 per ounce
22 July: USD 19.70, EUR 17.87 & GBP 15.03 per ounce
21 July: USD 19.34, EUR 17.55 & GBP 14.66 per ounce
20 July: USD 19.70, EUR 17.88 & GBP 14.95 per ounce
19 July: USD 19.99, EUR 18.07 & GBP 15.18 per ounce
18 July: USD 19.72, EUR 17.83 & GBP 14.89 per ounce


Recent Market Updates

– Gold In Bull Market – “Every Reason For It To Continue” – Frisby In Money Week
– Is Gold Set To Hit $1,500 Per Ounce?
– Why Italy’s bank crisis could be a ‘ticking time bomb’
– Gold Holds Near Two-Week Low as Risk Appetite Rises on U.S. Data
– IMF Scraps Forecast for Global-Growth Pickup on Brexit Fallout
– Gold, Trump and Rates: Bank That Foresaw Rally Flags $1,500
– Gold Lower After Central Bank’s Surprise Move
– “We Are On the Cusp of an Explosion in the Silver Price” – John Embry

– Stocks Rally – Is Brexit Systemic Risks Contained?
– Britain has a new prime minister – here’s what that means for you
– Metals Caught Between Global Gloom, U.S. Job Gains as Gold Slips
– Central Bank Resumes Monthly Gold Buying in Bid to Diversify Reserves

First published here: http://j.mp/2aqDXQ9

“Could Not Invent A More Bullish Story For Gold Bullion”

Tags

, , , , , , , ,

Newstalk’s Nick Bullman interviewed GoldCore’s Mark O’Byrne on “Down To Business” at 0643 this morning.newstalkradioThe interview on Breakfast (06:30 – 09:00) begins in the 14th minute (Part I) and can be listened to here

Topics covered were:
– Gold’s performance so far in 2016 – +25% in USD, +25% in EUR and +40% in GBP
– Gold acting as a hedge against fiat currencies
– “Could not invent a more bullish story for gold”
– Economic recoveries are tentative and leading to ultra loose monetary policies
– A lot of strong fundamentals including negative interest rates, polarisation of politics and “Clash of Civilisations”
– Short term risks with FOMC, Yellen and options expiration – may create short term risks
– Gold can rise even if dollar continues to rise
– Gold mining shares are up 80%. Are they over valued?
– Mining shares are more high risk and volatile than gold
– Allocation of 20% to gold merited given risks
– “Most of new buying from pension funds and companies”
–  Avoid ETFs and paper gold – Have absolute legal title to physical gold

The interview can be listened to here

7RealRisksBanner

 

Gold and Silver Bullion – News and Prices

Gold edges up as dollar slips ahead of Fed meet (Reuters)

Gold Gains as Dollar Dips Before Fed, Official Sees BOE Stimulus (Bloomberg)

Gold ends lower as expectations grow for interest-rate hike later this year (Marketwatch)

Top credit ratings agency declares European Union “unsustainable” (Cityam)

Wall St. declines as earnings take center stage (Reuters)

SWOT Analysis: Is There Increased Political Risk Building into the Gold Market? (Goldseek)

An ‘insane’ number of catalysts are poised to roil vulnerable markets this week (Marketwatch)

Brexit and the City (Moneyweek)

The Brexit vote is over and the UK is fine – let’s stop the negativity (Telegraph)

“Central Bankers Are Killing Capitalism” Odey Warns, Moving Politics “Fast To Extremes” (Zerohedge)

Gold Prices (LBMA AM)

26 July: USD 1,321.25, EUR 1,199.563 & GBP 1,006.396 per ounce
25 July: USD 1,315.00, EUR 1,196.913 & GBP 1,000.321 per ounce
22 July: USD 1,323.20, EUR 1,199.216 & GBP 1,005.103 per ounce
21 July: USD 1,322.00, EUR 1,199.318 & GBP 1,000.754 per ounce
20 July: USD 1,325.60, EUR 1,204.308 & GBP 1,005.865 per ounce
19 July: USD 1,332.20, EUR 1,203.376 & GBP 1,009.042 per ounce
18 July: USD 1,326.15, EUR 1,200.298 & GBP 1,000.050 per ounce

Silver Prices (LBMA)

26 July: USD 19.68, EUR 17.89 & GBP 15.00 per ounce
25 July: USD 19.41, EUR 17.66 & GBP 14.77 per ounce
22 July: USD 19.70, EUR 17.87 & GBP 15.03 per ounce
21 July: USD 19.34, EUR 17.55 & GBP 14.66 per ounce
20 July: USD 19.70, EUR 17.88 & GBP 14.95 per ounce
19 July: USD 19.99, EUR 18.07 & GBP 15.18 per ounce
18 July: USD 19.72, EUR 17.83 & GBP 14.89 per ounce


Recent Market Updates

– Gold In Bull Market – “Every Reason For It To Continue” – Frisby In Money Week
– Is Gold Set To Hit $1,500 Per Ounce?
– Why Italy’s bank crisis could be a ‘ticking time bomb’
– Gold Holds Near Two-Week Low as Risk Appetite Rises on U.S. Data
– IMF Scraps Forecast for Global-Growth Pickup on Brexit Fallout
– Gold, Trump and Rates: Bank That Foresaw Rally Flags $1,500
– Gold Lower After Central Bank’s Surprise Move
– “We Are On the Cusp of an Explosion in the Silver Price” – John Embry

– Stocks Rally – Is Brexit Systemic Risks Contained?
– Britain has a new prime minister – here’s what that means for you
– Metals Caught Between Global Gloom, U.S. Job Gains as Gold Slips
– Central Bank Resumes Monthly Gold Buying in Bid to Diversify Reserves

First published here: http://j.mp/2aqDXQ9

The Forex Monopoly

Tags

, , , , , , , ,

Forex is a Monopoly, controlled by a small ‘cartel’ of big banks.  That’s changing, and changing fast – as a number of non-bank FX participants are replacing the traditional ‘big 12.’  As we explain in Splitting Pennies – the fact remains, if a small group of companies controlled and manipulated the price of any other market, they’d be shut down faster than you can say “Anti-Trust.”  

A short list of things that are unique about FX:

  • No “Insider Trading” rules.  Yes, that’s right!  No insider trading rules.  Don’t believe it, confirm it.
  • Trades 24/5 – no ‘market times’
  • People need FX – businesses need currency to operate (People don’t need stocks)
  • FX is an openly manipulated market (but, each central bank can only manipulate its own currency)

The most important thing stock traders need to understand about Forex

There’s a phenomenon in FX we can call ultra high latency information arbitrage.

During Brexit, it took the GBP/USD hours to go down, in total more than 20 hours from peak to valley.  If you missed the first move down, it was easy to catch the 2nd, or the 3rd, or the 4th.  Brexit is the most bright, obvious example but not the only one – it happens nearly every week. 

Coup in Turkey?  Risk on.  Failed coup?  Risk off.

In the stock market, when there’s news, not a moment goes by that the market absorbs it.  In fact, the information knee-jerk in stocks is so quick and usually so severe, traders have strategies designed to buy into the panic information leak selling.

It’s not possible to trade on information in stocks because it happens so quickly, even if you use algorithms and subscribe to Reuters ‘ultra low latency’ data service, there’s almost no opportunity there.  But in FX, it can take the markets tens of hours to absorb PUBLIC information.  No one had ‘insider’ knowledge about Brexit.  GBP/USD went down slowly, very slowly, over a period of many hours.  Spreads widened, but not to levels that would impact trading. 

But with FX, there’s good news.  You don’t need to own the FX Monopoly, to generate some Monopoly money.  But in FX, you can take your profits and spend it in your local shop (Children, don’t try to spend Monopoly money, it’s illegal).  FX – it’s like the Monopoly for adults!

If you want a quick Forex education, checkout Splitting Pennies – the pocket guide designed to instantly make you a Forex genius!

If you want to get started looking at investing, checkout Fortress Capital Forex

First published here: http://j.mp/2aamqLn

The Forex Monopoly

Tags

, , , , , , , ,

Forex is a Monopoly, controlled by a small ‘cartel’ of big banks.  That’s changing, and changing fast – as a number of non-bank FX participants are replacing the traditional ‘big 12.’  As we explain in Splitting Pennies – the fact remains, if a small group of companies controlled and manipulated the price of any other market, they’d be shut down faster than you can say “Anti-Trust.”  

A short list of things that are unique about FX:

  • No “Insider Trading” rules.  Yes, that’s right!  No insider trading rules.  Don’t believe it, confirm it.
  • Trades 24/5 – no ‘market times’
  • People need FX – businesses need currency to operate (People don’t need stocks)
  • FX is an openly manipulated market (but, each central bank can only manipulate its own currency)

The most important thing stock traders need to understand about Forex

There’s a phenomenon in FX we can call ultra high latency information arbitrage.

During Brexit, it took the GBP/USD hours to go down, in total more than 20 hours from peak to valley.  If you missed the first move down, it was easy to catch the 2nd, or the 3rd, or the 4th.  Brexit is the most bright, obvious example but not the only one – it happens nearly every week. 

Coup in Turkey?  Risk on.  Failed coup?  Risk off.

In the stock market, when there’s news, not a moment goes by that the market absorbs it.  In fact, the information knee-jerk in stocks is so quick and usually so severe, traders have strategies designed to buy into the panic information leak selling.

It’s not possible to trade on information in stocks because it happens so quickly, even if you use algorithms and subscribe to Reuters ‘ultra low latency’ data service, there’s almost no opportunity there.  But in FX, it can take the markets tens of hours to absorb PUBLIC information.  No one had ‘insider’ knowledge about Brexit.  GBP/USD went down slowly, very slowly, over a period of many hours.  Spreads widened, but not to levels that would impact trading. 

But with FX, there’s good news.  You don’t need to own the FX Monopoly, to generate some Monopoly money.  But in FX, you can take your profits and spend it in your local shop (Children, don’t try to spend Monopoly money, it’s illegal).  FX – it’s like the Monopoly for adults!

If you want a quick Forex education, checkout Splitting Pennies – the pocket guide designed to instantly make you a Forex genius!

If you want to get started looking at investing, checkout Fortress Capital Forex

First published here: http://j.mp/2aamqLn

The Forex Monopoly

Tags

, , , , , , , ,

Forex is a Monopoly, controlled by a small ‘cartel’ of big banks.  That’s changing, and changing fast – as a number of non-bank FX participants are replacing the traditional ‘big 12.’  As we explain in Splitting Pennies – the fact remains, if a small group of companies controlled and manipulated the price of any other market, they’d be shut down faster than you can say “Anti-Trust.”  

A short list of things that are unique about FX:

  • No “Insider Trading” rules.  Yes, that’s right!  No insider trading rules.  Don’t believe it, confirm it.
  • Trades 24/5 – no ‘market times’
  • People need FX – businesses need currency to operate (People don’t need stocks)
  • FX is an openly manipulated market (but, each central bank can only manipulate its own currency)

The most important thing stock traders need to understand about Forex

There’s a phenomenon in FX we can call ultra high latency information arbitrage.

During Brexit, it took the GBP/USD hours to go down, in total more than 20 hours from peak to valley.  If you missed the first move down, it was easy to catch the 2nd, or the 3rd, or the 4th.  Brexit is the most bright, obvious example but not the only one – it happens nearly every week. 

Coup in Turkey?  Risk on.  Failed coup?  Risk off.

In the stock market, when there’s news, not a moment goes by that the market absorbs it.  In fact, the information knee-jerk in stocks is so quick and usually so severe, traders have strategies designed to buy into the panic information leak selling.

It’s not possible to trade on information in stocks because it happens so quickly, even if you use algorithms and subscribe to Reuters ‘ultra low latency’ data service, there’s almost no opportunity there.  But in FX, it can take the markets tens of hours to absorb PUBLIC information.  No one had ‘insider’ knowledge about Brexit.  GBP/USD went down slowly, very slowly, over a period of many hours.  Spreads widened, but not to levels that would impact trading. 

But with FX, there’s good news.  You don’t need to own the FX Monopoly, to generate some Monopoly money.  But in FX, you can take your profits and spend it in your local shop (Children, don’t try to spend Monopoly money, it’s illegal).  FX – it’s like the Monopoly for adults!

If you want a quick Forex education, checkout Splitting Pennies – the pocket guide designed to instantly make you a Forex genius!

If you want to get started looking at investing, checkout Fortress Capital Forex

First published here: http://j.mp/2aamqLn

The Forex Monopoly

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Forex is a Monopoly, controlled by a small ‘cartel’ of big banks.  That’s changing, and changing fast – as a number of non-bank FX participants are replacing the traditional ‘big 12.’  As we explain in Splitting Pennies – the fact remains, if a small group of companies controlled and manipulated the price of any other market, they’d be shut down faster than you can say “Anti-Trust.”  

A short list of things that are unique about FX:

  • No “Insider Trading” rules.  Yes, that’s right!  No insider trading rules.  Don’t believe it, confirm it.
  • Trades 24/5 – no ‘market times’
  • People need FX – businesses need currency to operate (People don’t need stocks)
  • FX is an openly manipulated market (but, each central bank can only manipulate its own currency)

The most important thing stock traders need to understand about Forex

There’s a phenomenon in FX we can call ultra high latency information arbitrage.

During Brexit, it took the GBP/USD hours to go down, in total more than 20 hours from peak to valley.  If you missed the first move down, it was easy to catch the 2nd, or the 3rd, or the 4th.  Brexit is the most bright, obvious example but not the only one – it happens nearly every week. 

Coup in Turkey?  Risk on.  Failed coup?  Risk off.

In the stock market, when there’s news, not a moment goes by that the market absorbs it.  In fact, the information knee-jerk in stocks is so quick and usually so severe, traders have strategies designed to buy into the panic information leak selling.

It’s not possible to trade on information in stocks because it happens so quickly, even if you use algorithms and subscribe to Reuters ‘ultra low latency’ data service, there’s almost no opportunity there.  But in FX, it can take the markets tens of hours to absorb PUBLIC information.  No one had ‘insider’ knowledge about Brexit.  GBP/USD went down slowly, very slowly, over a period of many hours.  Spreads widened, but not to levels that would impact trading. 

But with FX, there’s good news.  You don’t need to own the FX Monopoly, to generate some Monopoly money.  But in FX, you can take your profits and spend it in your local shop (Children, don’t try to spend Monopoly money, it’s illegal).  FX – it’s like the Monopoly for adults!

If you want a quick Forex education, checkout Splitting Pennies – the pocket guide designed to instantly make you a Forex genius!

If you want to get started looking at investing, checkout Fortress Capital Forex

First published here: http://j.mp/2aamqLn

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