Investment and securities Books

Book SynopsisCNBC''s Fast Money Commentator Steve Cortes shows how to buck the trend and become a well-informed investor The public needs to think independently and not be duped, particularly because those who are selling their messages or promoting their ideas have a plethora of powerful media through which to do so. Against the Herd presents six contrarian views of major events that will shape the future. Steve Cortes of CNBC pulls no punches in explaining these trends. Many will find his views counterintuitive and even controversial. Some will find his forecasts alarming. But open-minded readers who are willing to heed his well-informed advice will find it illuminating, beneficial, and profitable. Steve Cortes presents six contrarian views of major events that will shape the future for investors including the fall of China and the end of the golden era of free trade The contrarian stances are presented because they are actionable Table of ContentsIntroduction 1 Chapter 1 The Corleones Meet Confucius 7 The Chinese Mirage of Miracle Expansion Chapter 2 Dolls Are Meant for Children 33 Japan Stares into the Abyss of a Death Spiral Chapter 3 Can’t Touch This 57 Resist the Allure of Gold Chapter 4 House of Pain 81 Housing Does Not Recover Anytime Soon Chapter 5 You Can’t Handle the Truth, or the Volatility 123 Don’t Own Stocks (or at Least Not So Many) Chapter 6 Still the One 151 Get Long-Term Bullish on America Conclusion 175 Notes 177 Acknowledgments 185 About the Author 187 Index 189

Read more less

Book SynopsisThe questions every investor should ask before parting with their hard-earned cash This book serves as an advocate of the consumer and brings to light what insiders know about the side of the sales pitches that consumers don''t, but need to hear. Stop the Investing Rip-Off reveals the questions every investor should ask during a financial sales pitch before they pull the trigger and buy the next mutual fund, stock, advisory service, or other investment product. Based on David Loeper''s nearly twenty-five years of experience of seeing the inner workings of the industry, this updated edition of his classic book offers new strategies based on the performance of the stock market over the past two years. Sheds light on the oft unseen deceit of the financial services industry An updated and revised edition of the bestselling Stop the Investing Rip-Off Written by David Loeper who is regularly quoted in Kiplinger''s Money anTable of ContentsPreface ix Acknowledgments xix Chapter 1 Major Brokerage Firms 1 Chapter 2 Investment Advisers 19 Chapter 3 Hybrids—Advisory Services Provided through Brokerages 27 Chapter 4 Discount Brokers 33 Chapter 5 Financial Planners and Wealth Managers 43 Chapter 6 The Financial Press 49 Chapter 7 The Broadcast Media 55 Chapter 8 Authors, Self-Help Books, and Financial Celebrities 61 Chapter 9 Mutual Funds and ETFs 73 Chapter 10 Insurance Agents (and Insurance Companies) 87 Chapter 11 Your Company-Endorsed Retirement Plan Adviser 119 Chapter 12 Banks and Trust Companies 123 Chapter 13 Software, Web Sites, and Financial Educators 127 Chapter 14 Pitches They All Use to Sacrifice Your Life 139 Chapter 15 Resources to Protect Yourself 161 Conclusion 179 Appendix A The Other Millionaire You Make with 2.5 Percent Excess Fees 181 Appendix B The Other Millionaire You Make with 1.5 Percent Excess Fees 185 About the Author 189 Index 191

Read more less

Book SynopsisLooks at global debt capital markets in the post-crisis world. This book offers insights into derivative pricing, cross-currency hedging, and new liquidity legislation. It provides expanded coverage on a range of topics within hedging, derivatives, bonds, rebalancing, and global debt capital markets.Table of ContentsForeword xiii Preface xvii About the Authors xix Part One Introduction to Bonds 1 Chapter 1 The Bond Instrument 3 Chapter 2 Bond Instruments and Interest-Rate Risk 43 Appendix 2.1 Formal Derivation of Modified-Duration Measure 59 Appendix 2.2 Measuring Convexity 59 Appendix 2.3 Taylor Expansion of the Price/Yield Function 61 Chapter 3 Bond Pricing, Spot, and Forward Rates 65 Appendix 3.1 The Integral 83 Appendix 3.2 The Derivation of the Bond Price Equation in Continuous Time 85 Chapter 4 Interest-Rate Modelling 89 Appendix 4.1 Geometric Brownian Motion 101 Chapter 5 Fitting the Yield Curve 105 Appendix 5.1 Linear Regression: Ordinary Least Squares 124 Appendix 5.2 Regression Splines 127 Part Two Selected Market Instruments 133 Chapter 6 The Money Markets 135 Appendix 6.1 179 Chapter 7 Hybrid Securities and Structured Securities 181 Chapter 8 Bonds with Embedded Options and Option-Adjusted Spread Analysis 205 Appendix 8.1 Calculating Interest Rate Paths Using Microsoft Excel 232 Chapter 9 Inflation-Indexed Bonds and Derivatives 235 Appendix 9.1 Current Issuers of Public-Sector Indexed Securities 256 Appendix 9.2 U.S. Treasury Inflation-Indexed Securities (TIPS) 257 Chapter 10 Introduction to Securitisation and Asset-Backed Securities 261 Part Three Derivative Instruments 297 Chapter 11 Forwards and Futures Valuation 299 Chapter 12 Bond Futures Contracts 309 Appendix 12.1 The Conversion Factor for the Long Gilt Future 324 Chapter 13 Swaps 329 Appendix 13.1 Calculating Futures Strip Rates and Implied Swap Rates 370 Chapter 14 Credit Derivatives I: Instruments and Applications 375 Appendix 14.1 Bond Credit Ratings 418 Chapter 15 Credit Derivatives II: Pricing, Valuation, and the Basis 421 Chapter 16 Options I 435 Appendix 16.1 Summary of Basic Statistical Concepts 456 Appendix 16.2 Lognormal Distribution of Returns 457 Appendix 16.3 Black-Scholes Model in Microsoft Excel 458 Chapter 17 Options II 461 Part Four Bond Trading and Hedging 475 Chapter 18 Value-at-Risk and Credit VaR 477 Appendix 18.1 Assumption of Normality 513 Chapter 19 Government Bond Analysis, the Yield Curve, and Relative-Value Trading 517 Chapter 20 Approaches to Trading and Hedging 551 Appendix 20.1 Summary of Derivation of Optimum Hedge Equation 571 Appendix 20.2 Forward-Rate Structure in Conventional Yield-Curve Environment 571 Chapter 21 Derivatives Risk Management: Convexity, Collateral, and Correlation 573 Appendix A Statistical Concepts 621 Appendix B Basic Tools 627 Appendix C Introduction to the Mathematics of Fixed-Income Pricing 633 Appendix D About the Companion Website 639 Glossary 641 Index 669

Read more less

Book SynopsisKey strategies for running a family office for fund managers Understanding the basics of the family office industry is essential if you want to succeed in establishing a successful fund for a wealthy family. That''s where The Family Office Book comes in. Outlining key strategies for family offices, from what a family office is to how the industry operates, and important global differences, the book is packed with interviews with experts from leading family offices. Providing readers with need-to-know tips and tools to succeed, The Family Office Book gives current and future practitioners everything they need to know about this popular segment of the financial industry. Includes investment criteria, presented as a roadmap showing how several family offices are allocating capita Outlines strategies for fund managers of all types, including mutual funds, real estate funds, private equity, and hedge funds on raising capital in this fielTable of ContentsIntroduction xi Part One Family Office Fundamentals 1 Chapter 1 The Family Office Industry 3 What Is a Family Office? 3 The Family Office Universe 5 The History of Family Offices 6 State of the Family Office Industry 9 Who Uses a Single or Multi-Family Office? 10 Why Family Offices? 12 More Money, More Problems 13 Family Office Industry Conferences 13 Conclusion 14 Chapter 2 Family Office Services 15 Ultra-Affluent Clients Have Different Needs 15 Family Office Services 17 Additional Benefits and Life Management Services as a Competitive Advantage 17 Single versus Multi-Family Office Services 19 Differences in Global Family Office Service Offerings 20 Conclusion 21 Chapter 3 Family Office Operations 23 Outsourced Model 23 Family Office Team Members 25 Family Office Investment Committees 27 Board of Advisors 27 Family Office Governance 27 Individual Family Governance 28 From CPA to Family Office CEO 29 Family Office Service Providers 31 Developing a Well-Oiled Family Office Machine 32 Implementing Processes, Procedures, and Systems in Your Family Office 32 Conclusion 32 Chapter 4 The Ultra-Affluent’s Guide to Selecting a Family Office 33 Starting a Single Family Office versus Joining a Multi-Family Office 33 Objective Family Office Selection Advice 34 What Do You Want? 34 Character Judgments 35 Seven Critical Family Office Questions to Ask 36 Family Office Veteran Quotes on How to Select a Family Office 37 Family Office One-Pager Evaluation Form 42 Conclusion 42 Chapter 5 Family Office Marketing 45 Your Client Avatar 46 Crystal Clear Edge 47 Brian Tracy Interview Excerpt on Capital Raising 48 Capital Raising Trifecta 49 Capital Raising Funnel 50 Storytelling 54 Persuasive Writing (Copywriting) 58 Brian Hughes Interview on Family Office Business Development 60 Conclusion 68 Part Two Family Office Veteran Interviews 71 Chapter 6 Single Family Office Interviews 73 Family Office Interview with Michael Connor of Consolidated Investment Group 74 Family Office Interview with Elizabeth Hammack of cm Capital Corporation 88 Family Office Interview with Frank Casey 101 Family Office Interview with John Grzymala 116 Family Office Interview with Matthew Andrade, Director of Investment Analysis at Kinnear Financial 122 Family Office Interview with Angelo Robles, President of the Family Office Association 131 Conclusion 146 Chapter 7 Multi-Family Offices Interview Transcripts 147 Family Office Interview with Charles Grace of Threshold Group 147 Family Office Interview with Lukas Doerig of Marcuard Family Office 159 Family Office Interview with Jeff Colin, Founder of Baker Street Advisors 171 Family Office Interview with Thomas Melcher of Hawthorn Multi-Family Office 187 Family Office Interview with Greg Kushner, Founder of Lido Advisors 200 Family Office Interview with Bob Benson, Chief Investment Officer of Laird Norton Tyee 217 Conclusion 229 Part Three Family Office Mechanics 231 Chapter 8 Family Office Investments 233 Traditional Investments 234 Alternative Investments 234 Venture Capital and Angel Investor Investments 235 Infrastructure Investments 236 Hard Asset Investments 236 Family Office Investment Process 237 Three Family Office Portfolio Construction Models 239 The Operating Business Sandbox Model 239 The Diversified Institutional Model 241 The Hybrid Model 241 Family Office Investment Committees 242 Investment Committee Examples 243 Strategic versus Tactical Asset Allocation 247 Institutional Consulting Firms and Family Office Investing 250 Family Office Interview with David Thomas, CEO of Equitas Capital Advisors, LLC 251 Conclusion 262 Chapter 9 Fund Manager Selection and Deal Flow 263 The Six-Step Fund Manager Selection Process 264 Managed Account Trends 266 Fund Manager Preferences 267 Global Fund Manager Due Diligence 267 Family Office Partnerships with Fund Managers 271 Managing Deal Flow Overload 272 Objective Character Analysis 273 The 6 Cs of Character Analysis 274 Family Office Interview with Evan Cooperman of Artemis Wealth Advisors 278 Conclusion 290 Chapter 10 The Future of the Family Office Industry 291 There Is No Family Office Industry 291 Shifting Investment Criteria 295 Family Office Job Growth 295 Family Office Training 295 New Global Hot Spots 296 Four Global Drivers of Family Office Industry Growth 297 Conclusion 299 Conclusion 301 Appendix: Family Office Newsletter 303 About the Author 305 Qualified Family Office Training 309 Index 311

Read more less

Book Synopsis

Read more less

Book SynopsisThe definitive guide to best practices for mastering techniques of the insider-led transition planning A must have book for business owners, key employees, and their advisors who need to be aware of the full spectrum of succession options, Buyouts provides objectives, advice, steps, and a host of examples on the full spectrum of insider-led buyouts. A road map for CPAs, it presents the parameters for many of the major industry segments, techniques for managing risk, providing retention and performance incentives for key personnel and insights into getting deals financed. Features advice and examples of insider led buyouts Essential guidance on succession options for business owners, key employees, and their advisors The 411 on selling your company for a fair price, maintaining control over the process, and realizing lifelong goals Transition planning is becoming a hot business topic as millions of business owners head into Table of ContentsAcknowledgments xvii Introduction The New Reality for Business Owners in 2012 1 The Middle Market 2 Not Another Mergers and Acquisitions Book 3 Chapter Organization 4 Chapter 1 Buyout Examples 7 Case Study—SRC Holdings, Corporation 7 Case Study—SSG Financial Services 11 Case Study—Quality Assembly and Logistics, LLC 14 Case Study—Jumbo Heater & Manufacturing Lessons Learned 18 Summary 19 Chapter 2 The Economy 21 Brief Overview of the Current Recession 21 Near Term Regulatory Environment—Tax Increases 25 The Longer View 26 Summary 27 Chapter 3 Finance 29 Community Banks 30 Regional and National Money Center Banks 32 Mezzanine Funds 33 Private Equity 34 Small Business Administration and Government Sources 35 Seller Notes 36 Summary 37 Chapter 4 Valuations 39 Purpose of the Valuation 40 Determining the Transaction Consideration 41 Standard of Value for Transactions 42 Types of Buyers and Sellers 46 Attributes of Ownership—Control and Minority Positions 47 Lack of Marketability 49 Additional Adjustments to Valuation 50 Three Valuation Approaches: Income, Market, Asset 50 Summary 61 Chapter 5 Industries and Businesses 63 Technology and Software 64 Communications 65 Energy 65 Commodity Goods—Retail Food and Agriculture 65 Healthcare 65 Manufacturing 66 Construction 66 Main Street Businesses 66 Discretionary Products and Services Industries 67 Professional Services 67 Summary 67 Chapter 6 Professional Advisors 69 Attorneys 69 Certified Public Accountant 70 Financial Advisors 71 Investment Bankers 72 Behavioral Science 73 Key Employees 75 Board Members or Advisory Members 76 Family 76 Summary 77 Chapter 7 Documents and Due Diligence 79 Due Diligence for the Seller 79 Due Diligence for the Buyer 83 Common Documents and Key Covenants 86 Summary 90 Chapter 8 Short Course on Taxes 91 Tax Issues for the Seller 91 Tax Issues for the Buyer 98 Summary 101 Chapter 9 Buyouts—Non-Sponsored Management 103 Advantages 104 Cautions 105 Valuation Insights 107 Viewpoint of the Seller 109 Viewpoint of the Buyer 111 Professional Advisors 112 Risk Environment 114 Technical Matters 115 Summary 125 Chapter 10 Buyouts—Sponsored Management 127 Advantages 128 Valuation 131 Viewpoint of the Seller 132 Viewpoint of the Buyer 133 Professional Advisors 137 Risk Environment 138 Technical Matters 142 Summary 144 Chapter 11 Buyouts—Sponsored 145 Advantages 146 Cautions 147 Valuation 148 Viewpoint of the Seller 150 Viewpoint of the Buyer 151 Professional Advisors 153 Risk Environment 153 Technical Matters 156 Summary 157 Chapter 12 Buyouts—Management and Employee Stock Ownership Plans and Trust 159 Advantages 160 Cautions 163 Valuation Insights 165 Viewpoint of the Seller 166 Viewpoint of the Buyer 168 Professional Advisors 169 Risk Environment 171 Technical Matters 180 Summary 190 Chapter 13 Buyouts—100% Employee Stock Ownership Plan and Trust 191 Advantages 192 Cautions 195 Valuation Insights 197 Viewpoint of the Seller 198 Viewpoint of the Buyer 199 Professional Advisors 201 Risk Environment 202 Technical Matters 210 Summary 214 Chapter 14 Buyouts—Professional Firms 215 Architectural and Engineering, Public Accounting, and Management Consulting Firms 215 Architectural and Engineering Firms 218 Public Accounting Firms 224 Management Consulting Firms 230 Summary 233 Chapter 15 Buyouts Using Parallel Companies 235 Advantages 236 Cautions 237 Valuation Insights 238 Viewpoint of the Seller 239 Viewpoint of the Buyer 239 Professional Advisors 240 Risk Environment 241 Technical Matters 244 Summary 244 Chapter 16 Buyouts with Family and Management 245 2010 Tax Law Update 245 Advantages 246 Cautions 248 Valuation Insights 249 Viewpoint of the Seller (Founding Generation) 250 Viewpoint of the Buyer (Next Generation) 251 Professional Advisors 253 Risk Environment 254 Technical Matters 256 Summary 265 Chapter 17 Buyouts with Employee Cooperatives 267 Advantages 268 Cautions 270 Valuations 271 Viewpoint of the Seller 271 Viewpoint of the Buyer 272 Professional Advisors 272 Risk Environment 273 Technical Matters 277 Summary 281 Chapter 18 Buyouts of the Smallest Companies 283 Advantages 283 Cautions 284 Valuation 285 Viewpoint of the Seller 286 Viewpoint of the Buyer 287 Professional Advisors 288 Risk Environment 288 Technical Matters 289 Summary 291 Chapter 19 Inside Buyouts Compared with Sale to Outsider 293 Relative Negotiating Strength 293 Where’s the Money? 294 Asset or Stock Sale 296 Contingency Payments 298 The Day After 298 Time Uncertain—Getting to the Close 299 Investment Bankers and Intermediaries 299 Common Third-Party Buyers 300 Summary 302 About the Website 305 Index 307

Read more less

Book SynopsisThe definitive introduction to FOREX trading Getting Started in Currency Trading, Fourth Edition is both an introduction and a reference manual for beginning and intermediate traders.Table of ContentsAcknowledgments xix Introduction About This Book xxi Part 1 The Foreign Exchange Markets Chapter 1 The World of FOREX 3 Introduction—What is FOREX? 3 What is a Spot Market? 4 Which Currencies Are Traded? 4 Who Trades on the Foreign Exchange? 5 How Are Currency Prices Determined? 6 When Do Currencies Trade? 8 How is Money Made in FOREX? 8 Why Trade Foreign Currencies? 9 What Tools Do I Need to Trade Currencies? 13 What Does It Cost to Trade Currencies? 13 FOREX versus Equities 14 FOREX versus Futures 14 Summary 15 Chapter 2 A Brief History of Currency Trading 17 Introduction 17 Ancient Times 17 The Gold Standard, 1816 to 1933 18 The Federal Reserve 18 Securities and Exchange Commission, 1933 to 1934 20 The Bretton Woods System, 1944 to 1973 21 The End of Bretton Woods and the Advent of Floating Exchange Rates 21 International Monetary Market 22 Into the Millennium 22 Arrival of the Euro 23 The CFTC and the NFA 25 Summary 25 Chapter 3 Five FOREX Markets 27 Introduction—Spot, Futures, Forwards, Options, Spread Betting 27 Currency Futures 29 Contract Specifications 29 Currencies Trading Volume 30 U.S. Dollar Index 30 Volume and Open Interest 31 Where to Trade Currency Futures 33 FOREX Futures 33 Summary 33 Chapter 4 Regulation: Past, Present, and Future 35 Introduction 35 Regulation in the FOREX Market 35 Regulation Past 36 Regulation Present 39 Regulation Future 43 Summary 44 Part 2 Getting Started Chapter 5 The Language of FOREX 47 Introduction 47 Currency Pairs 47 Major and Minor Currencies 48 Cross Currency 48 Exotic Currency 48 Base Currency 48 Quote Currency 49 Pips 49 Ticks 49 Margin 50 Leverage 51 Bid Price 52 Ask Price 52 Bid-Ask Spread 52 Quote Convention 52 Market Maker and ECN 53 Transaction Cost 53 Rollovers 54 Correlation 54 Summary 55 Chapter 6 FOREX by the Numbers 57 Introduction 57 Pips 58 Profit and Loss 59 Margin 60 Leverage 62 The Bid-Ask Spread 62 Profit Threshold 63 For Futures Traders 66 Summary 66 Chapter 7 A Guide to FOREX Trading Platforms 69 Introduction 69 Trading Platform Features 71 More Trading Platforms 79 Professional FX Platforms 80 Trading Platform Checklist 81 A Kid in the Candy Store 82 Summary 82 Chapter 8 Selecting a FOREX Broker 83 Introduction 83 Broker-Dealer Due Diligence 84 Demo Accounts 85 Market Maker or ECN? 86 Costs 87 Liquidity Providers 89 Customer Service 90 Trading Pair Palette 91 Financial Stability 91 Complaint and Error Resolution 92 Account Options 92 Games Brokers Play 93 Top Broker-Dealers 93 Popular Broker-Dealers 99 The Big Four Broker-Dealers 100 For the Professional and Non-U.S. Trader 101 Spread Betting 102 Fraud, Scams, and Off-Exchange 103 Broker-Dealer Checklist 103 Summary 103 Chapter 9 How to Open a FOREX Account 105 Introduction 105 The Demo Account 106 The Live Account 107 Redundancy 111 Summary 113 Chapter 10 Making the Trade 115 Introduction 115 Orders 115 Market Orders 117 Limit Orders 118 Stop Orders 118 Combination Orders 121 Specialty Orders 121 Order Placement 121 Order Execution 122 Order Confirmation 123 Open Orders 123 Open a Demo Account 124 Summary 125 Part 3 The Trader’s Arsenal Chapter 11 The FOREX Marketplace 129 Introduction 129 Portals and Forums 130 Broker-Dealer Reviews 133 Educational Resources 133 News and Calendars 135 Management Tools 136 System Development Tools 137 Data Services 140 Programming Services 142 Advisory Services 142 References, Periodicals, and Books 143 Fun Stuff 145 Summary 146 Chapter 12 Technical Analysis 147 Introduction 147 Bar Charts 148 Trendlines 151 Support and Resistance 151 Recognizing Chart Patterns 152 Reversal Patterns 152 Continuation Patterns 153 Candlestick Charts 155 Point and Figure Charts 157 Charting Caveat—Prediction versus Description 160 Indicators and Oscillators 161 Relative Strength Indicator 161 Momentum Analysis 163 Moving Averages 164 Bollinger Bands 165 Indicator Caveat—Curve-Fit Data 167 Wave and Swing Analysis 169 Cycle Analysis 170 Trading Systems 171 The Technician’s Creed 171 The Technician’s Caveat 171 Summary 172 Chapter 13 News Trading 173 Introduction 173 Fundamental Analysis 174 Fundamental Problems 174 Fundamental Factors 175 A Fundamental Discussion 181 FOREX News 186 Key News Releases 186 Reality versus Expectation 187 News Trading 187 Shockwave Analysis 189 Strategy and Tactics of News Trading 189 Summary 191 Part 4 Winning is the Name of the Game Chapter 14 Trading Spaces 195 Introduction 195 Charts, Bars, and Trading Spaces 196 Trading Profiles 199 Selecting a Trading Profile 201 The Market as a Process 202 Summary 203 Chapter 15 Setting Up Shop 205 Introduction 205 The Plan Components 206 The Trading Platform Plan 207 Pre-Trade Plan 209 Trading Session Plan 212 Pulling the Trigger 213 Post-Trade Plan 214 Summary 216 Chapter 16 A Simple System 217 Introduction 217 General Principles 218 A KIS Toolbox 219 A Simple System 220 Not So Simple 227 Pairs to Trade 228 Summary 228 Part 5 The Goodman Method of Trading Chapter 17 Goodman Wave Theory 231 Introduction 231 The Basic Market Paradigm 232 Goodman Wave Theory 234 The Basic Goodman Setup 243 Summary 244 Chapter 18 The Propagation Trade Setup 245 Introduction 245 The PTS 245 Summary 251 Chapter 19 The Dagger, the Waltz, and the Line 253 Introduction 253 The Belgian Dentist 254 Enter the Dagger 254 Waltzing the Trade 257 The Line! The Line! 264 Summary 267 Chapter 20 The Proactive Trader 269 Introduction 269 Laydowns 270 Bathtub Analysis 271 The Propagation Lens 272 Looking Inward and Outward 273 Multiple 3-C Counts 276 Stations 276 Ghost Trading 277 Sitting On Your Hands 278 Summary 279 Chapter 21 The 30-Trade Campaign Program 281 Introduction 281 Capital Allocation 282 The Tracks of Your Trades 286 Pre-Trade Checklist 286 Diagnostics 288 Characteristics of Successful Traders 291 Summary 293 Chapter 22 Goodmanisms 295 Goodmanisms 295 Summary 298 Part 6 Over the FOREX Rainbow Chapter 23 Tools for Traders 301 Introduction 301 Techniques 302 Time Studies 315 Fear and Greed, Greed and Fear 317 Summary 318 Chapter 24 Options and Exotics 321 Introduction 321 Options 322 A Primer on Options 322 Basic Options Terms 323 Options: Pros and Cons 324 The Four Basic Options Strategies 325 Purchase or Write Options? 325 Advanced Options Strategies 326 The Greeks 326 The Retail FOREX Options Landscape 327 Options or Spot FOREX? 328 Risk Management with Options 328 Exotics 330 Trading Exotics 332 Summary 332 Chapter 25 Managed FOREX 335 Introduction 335 Why Managed FOREX? 336 Pros and Cons 336 Types of Managers 337 Types of Managed Accounts 338 Trading Methods 340 Performance Analysis 342 Two Methods of Performance Analysis 345 The Due Diligence Process 346 Costs and Fees 350 Spotlight on Managers 352 Research and Resources 354 Summary 355 Chapter 26 Computer Trading 357 Introduction 357 Technical Analysis 357 Expert Advisors 358 Automated Trading, Agents, and BOTS 359 Get on My Cloud 359 High-Frequency and Ultra-High-Frequency Trading 360 Into the Future of FOREX 362 The Trend Machine 363 Grid and Pac Man Programs 364 Arbitrage 365 Pros and Cons of Arbitrage 370 Summary 371 Appendix A: List of World Currencies and Symbols 373 Appendix B: Time Zones and Global FX Trading Hours 379 Appendix C: Central Banks and Regulatory Agencies 381 Appendix D: Resources 385 Glossary 389 About the Author 403 Index 405

Read more less

Book SynopsisHow to make money investing in high-quality, low-risk stocks Purple Chips presents a unique stock-picking method based on identifying great companies based on simple visual examinations of financial health, applying three basic criteria to distinguish high-performing purple chip stocks from mere blue chip investments.Table of ContentsAcknowledgments xi Introduction 1 My Background 3 Chapter 1: The Psychology of Investing 7 Singles and Doubles Are Better 7 Tune Out the Noise 10 EPS Explained 11 Chapter 2: Purple Chips versus Blue Chips 17 Finding the Purple Chips 18 Minimum Seven Years of Positive and Growing EPS 18 Smooth and Predictable Growth in EPS 19 Minimum Market Capitalization of $1 Billion 23 Purple Chips versus Common Blue Chips 24 Dilution is a Value Killer 28 Dividends, or Getting Paid While You Wait 31 Purple Chips Make Money for Investors 31 Keeping It Simple: The Purple Chips Model versus Ratio Analysis 35 Con Edison versus Entergy 36 Wendy’s versus McDonald’s 37 General Mills versus Kraft Foods 39 Google versus Yahoo! 41 Chapter 3: Understanding and Seeing Valuation 43 The Normal Curve: An Odds-Based Approach 43 The Shifting EPS Line: A Quick Gauge of Value 45 Valuation Reset 49 Chapter 4: What Else You Need to Know 55 Earnings Trend 55 Value Traps 59 Valuation Trend 62 The P/E Ratio and Growth 69 How to Build a Portfolio of Purple Chips 71 Diversification 71 Position Size 72 Stop Loss Orders 73 No More Anchoring 74 Market Crashes 76 Do It Yourself 76 Chapter 5: When to Buy and Sell 79 Step 1: Draw the EPS Line 79 Step 2: Set the Buy and Sell Targets 82 Step 3: Adjust the Buy and Sell Targets 83 Buying Checklist 84 Selling Checklist 84 Chapter 6: Practice Case Studies 91 Case Study: Abbott Labs 93 Summary 106 Case Study: AutoZone 108 Summary 117 Case Study: Johnson & Johnson 118 Summary 127 Case Study: General Dynamics 129 Summary 136 Chapter 7: Purple Chips Summarized 137 Endnotes 141 Index 143 About the Author 149

Read more less

Book SynopsisProtect assets during times of crisis with this new edition of the New York Times bestseller! When the first edition of this book appeared it was before the economic crash. This new edition shows how David Darst''s particular kind of asset allocation helped his investors during that volatile period. It also contains a discussion of downside and risk tolerance and new self-tests for determining your risk tolerance. And, finally, it reveals how the asset allocation model has changed since 2008. In all of these areas, the author will continue to include new insightful anecdotes like those that peppered the first edition. Shows how to tap into the use of asset allocation strategies to protect your investments Offers updated information on downside and risk tolerance The next step resource from a managing director of Morgan Stanley and the bestselling author David Darst Includes a Foreword by Jim Cramer David Darst revTrade Review“The Little Book That Still Saves Your Assets presents a necessary introduction to managing personal investments that would be beneficial to anyone in the financial services industry. . . Everyone who invests money now or ever intends to would benefit from Darst's worthwhile introduction to the most fundamental principle of investing.”—ABA Banking JournalTable of ContentsForeword xiii Introduction xix Chapter One What Happened?? What Happened!! 1 Chapter Two We All Do It (Even if We Don’t Realize It) 15 Chapter Three Everyone Needs an Uncle Frank 33 Chapter Four Building Your House 39 Chapter Five Parts of the Whole—Combining Dreams into a Plan 55 Chapter Six Two Strategies to Win the Battle for Investment Survival 75 Chapter Seven Do You Know Where You Are Going? 91 Chapter Eight Mix, Don’t Match 105 Chapter Nine Our Minds, Our Selves 119 Chapter Ten The Jockey Matters as Much as the Horse 133 Chapter Eleven Riding Out Storms 149 Chapter Twelve Build Your House on These Rocks 161 Chapter Thirteen Count to Zen 175 Chapter Fourteen Seven Quick Ways to Ruin 185 Chapter Fifteen The Road Less Traveled That You Should Take Right Now 195 Who Are You? (Determining Your Investment Profile) 209 What Do You Think? (Determining Your Investment Outlook) 211 What Works for You? (Determining Your Investment Selection) 213 Don’t Take My Word for It 215 Acknowledgments 225

Read more less

Book SynopsisThe coming financial apocalypse and what government and individuals can do to insulate themselves against the worst shocks In this controversial book a noted adherent of Austrian School of Economics theories advances the thesis that the United States is fast approaching the end stage of the biggest asset bubble in history. He describes how the bursting of the bubble will cause a massive interest rate shock that will send the US consumer economy and the US governmentpumped up by massive Treasury debtinto bankruptcy, an event that will send shockwaves throughout the global economy. Michael Pento examines how policies followed by both the Federal Reserve and private industry have contributed to the impending interest rate disaster and highlights the similarities between the US and European debt crisis. But the book isn''t all doom and gloom. Pento also provides well-reasoned solutions that, government, industry and individuals can take to insulate themselves against the coming Table of ContentsIntroduction xi Acknowledgments xv Chapter 1: As Good as Gold? 1 The Great American Money Machine 4 “Dad, Where Does Money Come From?” 8 The Implications of a Fiat Currency 11 Notes 14 Chapter 2: The Anatomy of a Bubble 15 The Great Depression—A Historical Comparison 19 Two Decades of a Bubble Economy 25 Does CDO Rhyme with Tulip Bulb? 29 Today’s Bubble in Bonds Rhymes with the Debt-Fueled Real Estate Crisis 31 Notes 33 Chapter 3: Bernanke’s Hair-of-the-Dog Economy 35 Austrian Trade Cycle Theory versus Keynesian Toys and Candy 36 “End This Depression Now!”—The Game Show 41 “I’m Not Addicted to Easy Money . . . and I Can Stop at Anytime” 50 No Way Out—Starring Ben Bernanke . . . 56 The Thirty-Year Party in the Bond Market 62 Notes 65 Chapter 4: Deflation Phobia and Inflation Philos 67 Fed Busters 69 Common Fed-lore Myth 1—The Myth of the Deflationary Death Spiral Monster 69 The Truth about Price Deflation 72 Fed-Lore Myth 2: Japan Proves that Debt and Deflation Go Hand-in-Hand 77 Myth 3: The Keynesian Fed-Lore of the Phillips Curve 86 Myth 4: You Can Rely on Government Statistics 92 Myth 5: The Fed Was Created for Your Benefit 100 Notes 101 Chapter 5: The Bubble Reality Check 103 The Investor Reality Check 104 The Interest Rate Reality Check 110 The Teaser Rate on U.S. Debt—Reality Check 115 Banker Reality Check 119 The China Reality Check 127 Washington’s Addiction to Debt—Reality Check 134 Notes 140 Chapter 6: The End of an Empire 141 The End of a Monetary System 145 The Economic Laws of Debt 152 U.S. Debt—This Time It’s Different 153 Is Austerity a Bad Thing? 157 Where Will All the Money Go? 160 The Bell Is Ringing for the Bubble in the Bond Market 163 Banana Ben to the Rescue 167 The Cost of an Empire 169 Notes 173 Chapter 7: Real World Europe 175 The Creation of the Euro 176 Greece 183 Dr. Hayek vs. Dr. Keynes 190 Dr. Keynes and Dr. Hayek and America’s Bout with Hyperinflation 195 I’ll Take Currency Debasement for $40 Billion . . . a Month 200 Final Jeopardy 203 The Canary in the Coal Mine 204 Notes 205 Chapter 8: The Debt Crisis 207 From Pioneer to Penurious . . . 207 The Sixteenth Amendment . . . The Beginning of the Slippery Slope 209 Mexican Debt Crisis 215 The Asian Contagion 218 Russian Debt Crisis 220 The Debt Crisis Fallout 223 What Would It Look Like Here? 225 It Can’t Happen Here? 233 I Don’t Want to Be Right 238 Conclusion 247 Notes 248 Chapter 9: What Can the Government Do to Mollify the Debt Collapse? 251 The Principles of a Free Market 252 Solution 1: Allow the Deleveraging Process to Happen 257 Solution 2: Strengthen and Stabilize the U.S. Dollar 260 Solution 3: Allow Interest Rates to Rise to the Supply of Savings versus the Demand for Money 262 Solution 4: Balance the Budget 264 Solution 5: Aggressively Reduce the Amount Of Regulatory Burden 270 Solution 6: Simplify the Tax Code 273 Solution 7: Fair Trade and a Free Trade 276 Solution 8: Overhaul Education 277 Conclusion 278 Notes 283 Chapter 10: How to Invest Your Money Before and After the Bond Bubble Bursts 285 What to Own When U.S. Debt and the Dollar Collapse 289 Notes 294 About the Author 295 Index 297

Read more less

Book SynopsisAchieve positive returns on your investments, in any market With Managing Your Investment Portfolio FD you can build and manage a portfolio of investments that s flexible enough to provide positive returns, no matter what the market is doing.Table of ContentsIntroduction 1 Part I: It’s All about Portfolios 7 Chapter 1: Introducing Great Opportunities for Advanced Investors 9 Chapter 2: Assessing Risk: Deciding What Kind of Investor You Are 25 Part II: Picking the Strategies for You 43 Chapter 3: Grasping Basic Hedge-Fund Strategies 45 Chapter 4: Dealing with Volatility and Economic Cycles 63 Chapter 5: Digging Deeper into Alternative Assets: Commodities and Currencies 91 Chapter 6: Assessing the Hedge-Fund Industry: Don’t Believe the Hype 111 Part III: Thinking and Acting Like a Hedgie: Simple Strategies You Can Employ Yourself 129 Chapter 7: Selling What You Don’t Own: Short Selling 131 Chapter 8: Understanding Arbitrage: Big Name, Simple Idea 149 Chapter 9: Weighing Up Growth Versus Value Investing 165 Chapter 10: Gearing up to Use Leverage 187 Chapter 11: Stepping into Structured Investments 197 Chapter 12: Benefitting from Shareholder Activism 211 Part IV: Delving into More Specialist Techniques (with a Little Help) 229 Chapter 13: Advanced Investing in Commodities: Sharks and Rocket Scientists 231 Chapter 14: Investing in Emerging-Market Equities and Currencies 253 Chapter 15: Investing Macro Style: Seeing the Big Picture 269 Part V: Tools of the Trade: Useful Instruments 295 Chapter 16: Following Indices: Exchange-Traded Funds and Other Trackers 297 Chapter 17: Taking a Punt on the Financial Markets 325 Part VI: The Part of Tens 339 Chapter 18: Ten Top Tips to Protect Your Stash 341 Chapter 19: Ten Hedge-Fund Style Techniques to Grow Your Wealth 347 Index 353

Read more less

Book SynopsisCanada's bestselling author on real estate draws back the curtain on real estate investing Investing in real estate has often been viewed as the poor second cousin to the stock and bond markets.Table of ContentsForeword vii Acknowledgements xiii Introduction xvii Chapter One Why Invest in Real Estate? 1 Chapter Two My Early Years as an Investor 45 Chapter Three Design a Portfolio to Weather the Inevitable Storms 71 Chapter Four Building the Team 103 Chapter Five The Investor Mentality 131 Chapter Six Riding the Cycle to Long-Term Sustainable Wealth 157 Chapter Seven Why Do You Really and Truly Want to Invest in Real Estate? 185 Chapter Eight Is Real Estate Investing Part of Your Journey? 201 About the Author 223

Read more less

Book SynopsisA comprehensive look at the world of leveraged buyouts The private equity industry has grown dramatically over the past twenty years. Such investing requires a strong technical know-how in order to turn private investments into successful enterprises.Trade Review“Pignataro’s step-by-step approach is ideal for anyone trying to learn or hone the analytical skills necessary to model the basic viability of an LBO, from the point of view of the company as well as the investor. He explains valuational concepts and how to capture them in Excel spreadsheets, the latter described down to the level of individual keystrokes…. Leveraged Buyouts is a self-contained course in rudimentary financial modeling (and a crash course in Excel as well). It’s a perfect read for anyone wanting to enter the world of investment banking or private equity.” —Investing.comTable of ContentsPreface xi The Heinz Case Study xii How This Book Is Structured xiii Part One Leveraged Buyout Overview 1 Chapter 1 Leveraged Buyout Theory 3 Cash Availability, Interest, and Debt Pay-Down 3 Operation Improvements 4 Multiple Expansion 4 What Makes Good Leveraged Buyout? 4 Exit Opportunities 5 Is Heinz a Leveraged Buyout? 5 Chapter 2 What Is Value? 7 Book Value 7 Market Value 7 Enterprise Value 8 Multiples 12 Three Core Methods of Valuation 14 Chapter 3 Leveraged Buyout Analysis 19 Purchase Price 19 Sources and Uses of Funds 22 IRR Analysis 33 Part Two Leveraged Buyout Full-Scale Model 49 Chapter 4 Assumptions 51 Purchase Price 57 Sources of Funds 63 Uses of Funds 69 Chapter 5 The Income Statement 75 Revenue 76 Cost of Goods Sold 76 Operating Expenses 77 Other Income 78 Depreciation and Amortization 80 Interest 80 Taxes 81 Nonrecurring and Extraordinary Items 82 Distributions 82 Shares 83 Heinz Income Statement 84 Last Twelve Months (LTM) 108 Income Statement—Projections 116 Chapter 6 The Cash Flow Statement 133 Cash Flow from Operating Activities 133 Cash Flow from Investing Activities 137 Cash Flow from Financing Activities 137 Financial Statement Flows Example 138 Heinz Cash Flow Statement 144 Heinz Last Twelve Months (LTM) Cash Flow 154 Cash Flow Statement Projections 160 Chapter 7 The Balance Sheet 179 Assets 179 Liabilities 182 Heinz Balance Sheet 184 Chapter 8 Balance Sheet Adjustments 199 Goodwill 200 Heinz Balance Sheet Adjustments 208 Chapter 9 Depreciation Schedule 221 Straight-Line Depreciation 222 Accelerated Depreciation 222 Deferred Taxes 227 Projecting Depreciation 231 Projecting Amortization 241 Projecting Deferred Taxes 244 Chapter 10 Working Capital 247 Asset 247 Liability 247 Operating Working Capital 248 Heinz’s Operating Working Capital 251 Projecting Operating Working Capital 262 Operating Working Capital and the Cash Flow Statement 271 Chapter 11 Balance Sheet Projections 279 Cash Flow Drives Balance Sheet versus Balance Sheet Drives Cash Flow 283 Balancing an Unbalanced Balance Sheet 301 Chapter 12 Debt Schedule and Circular References 309 Debt Schedule Structure 309 Modeling the Debt Schedule 310 Circular References 329 Automatic Debt Pay-Downs 337 Basic Switches 339 Finalizing the Model 339 Chapter 13 Leveraged Buyout Returns 351 Exit Value 351 Returns to 3G Capital 355 Multiple Expansion 361 Debt Pay-Down 364 Conclusion 364 Part Three Advanced Leveraged Buyout Techniques 365 Chapter 14 Accelerated Depreciation 367 MACRS 367 Accelerated versus Straight-Line Depreciation 372 Chapter 15 Preferred Securities, Dividends, and Returns to Berkshire Hathaway 377 Preferred Securities 377 Preferred Dividends 378 Returns to Berkshire Hathaway 388 Chapter 16 Debt Covenant Ratios, and Debt Fee Amortization 395 Coverage Ratios 395 Leverage Ratios 397 Debt Fee Capitalization and Amortization 399 Chapter 17 Paid-in-Kind Securities 409 Apendixes Appendix 1: Model Quick Steps 417 Appendix 2: Financial Statement Flows 419 Income Statement to Cash Flow 419 Cash Flow to Balance Sheet 420 Appendix 3: Excel Hot Keys 421 About the Companion Website 423 About the Author 425 Index 427

Read more less

Book SynopsisThe economic climate is ripe for another golden age of shareholder activism Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations is a must-read exploration of deep value investment strategy, describing the evolution of the theories of valuation and shareholder activism from Graham to Icahn and beyond. The book combines engaging anecdotes with industry research to illustrate the principles and methods of this complex strategy, and explains the reasoning behind seemingly incomprehensible activist maneuvers. Written by an active value investor, Deep Value provides an insider''s perspective on shareholder activist strategies in a format accessible to both professional investors and laypeople. The Deep Value investment philosophy as described by Graham initially identified targets by their discount to liquidation value. This approach was extremely effective, but those opportunities are few and far between in the mTable of ContentsPreface ix Acknowledgments xv About the Author xvii Chapter 1 The Icahn Manifesto 1 Chapter 2 Contrarians at the Gate 19 Chapter 3 Warren Buffett: Liquidator to Operator 35 Chapter 4 The Acquirer’s Multiple 53 Chapter 5 A Clockwork Market 77 Chapter 6 Trading in Glamour: The Conglomerate Era 99 Chapter 7 Catch a Falling Knife 119 Chapter 8 The Art of the Corporate Raid 151 Chapter 9 How Hannibal Profits From His Victories 169 Chapter 10 Applied Deep Value 187 Index 217

Read more less

Book SynopsisWall Street Journal Bestseller Valuable insights on monetary policies, their impact on your financial future, and how to protect against them Written by the New York Times bestselling author team of John Mauldin and Jonathan Tepper, Code Red spills the beans on the central banks in the U.S. , U.K. , E.U.Trade Review“If you read only one book on finance this year, make it Code Red: How to Protect Your Savings from the Coming Crisis, by John Mauldin and Jonathan Tepper, authors of the bestseller Endgame, which delved into the 2008 collapse.”—Forbes magazineTable of ContentsAcknowledgments ix Introduction: Code Red 1 Part I 11 Chapter One: The Great Experiment 13 Chapter Two: Twentieth-Century Currency Wars: The Barbarous Relic and Bretton Woods 33 Chapter Three: The Japanese Tsunami: Starting a Currency War 57 Chapter Four: A World of Financial Repression 91 Chapter Five: Arsonists Running the Fire Brigade 117 Chapter Six: Economists Are Clueless 133 Chapter Seven: Escape Velocity 171 Chapter Eight: What Will Happen When It All Goes Wrong 201 Chapter Nine: Easy Money Will Lead to Bubbles and How to Profit from Them 221 Part II: Managing Your Money 251 Chapter Ten: Protection through Diversification 253 Chapter Eleven: How to Protect Yourself against Inflation 271 Chapter Twelve: A Look at Commodities, Gold, and Other Real Assets 301 Conclusion 319 Afterword 325 Notes 341 About the Authors 343 Index 345

Read more less

Book SynopsisInvestment funds are the driving force behind much global private economic development, and yet the world of investment funds can be complex and confusing.Table of Contents1 Introduction to Funds 1 1.1 Why this book? 1 1.2 Alternative assets 1 1.3 What is a fund? 2 1.4 Categories of funds 3 1.4.1 Ways to categorize 3 1.5 Choosing a vehicle 5 1.6 Open-ended and closed-ended fund structures 6 1.6.1 Introduction 6 1.6.2 Impact of the credit crisis 7 1.7 Contents of this book 8 2 Limited Partnerships – Use in Alternative Asset Funds 9 2.1 Introduction to limited partnerships 9 2.1.1 Suitability of limited partnerships for alternative asset funds 9 2.1.2 Benefits of limited partnerships 9 2.1.3 Types of limited partnerships 9 2.2 Structure of limited partnership funds 9 2.2.1 Role of general and limited partners 9 2.2.2 Management and operation of the partnership 10 2.2.3 Remuneration 11 2.2.4 UK limited partnerships 11 2.2.5 US limited partnerships 13 2.2.6 Parallel funds 15 2.2.7 Master/feeders 17 2.3 Establishment of the fund 18 2.3.1 Process 18 2.3.2 Documentation 19 2.4 Investing 20 2.4.1 Investment objective and returns 20 2.4.2 Investment strategy 20 2.4.3 Investment period 20 2.4.4 Term 21 2.4.5 Fund borrowing 21 2.4.6 Investment restrictions 21 2.5 Commitments by investors 22 2.5.1 Commitments/drawdowns 22 2.5.2 Recycling 22 2.5.3 Default 23 2.5.4 Management team’s commitment 24 2.5.5 Closings/equalization 24 2.5.6 Investor clawback 25 2.5.7 Withdrawals 25 2.5.8 Transfers 25 2.6 Economics 26 2.6.1 Management fee/priority profit share 26 2.6.2 Distributions/carried interest 26 2.6.3 Carried interest, escrow and clawback 29 2.6.4 Carried interest structure 30 2.6.5 Expenses 30 2.6.6 Transactional or monitoring fees 30 2.7 Governance 31 2.7.1 Removal of the general partner/manager 31 2.7.2 Key person 32 2.7.3 Advisory committee 33 2.7.4 Reports and meetings 33 2.8 Some conclusions 33 3 Hedge Funds 35 3.1 Introduction 35 3.2 Types of hedge fund strategies 35 3.2.1 Market neutral or directional 35 3.2.2 Discretionary or systematic 35 3.2.3 Strategy implementation and instruments 36 3.2.4 Typical strategies 36 3.3 Where are hedge funds located and what are the tax drivers? 39 3.3.1 Cayman Islands 39 3.3.2 British Virgin Islands 40 3.3.3 Jersey 41 3.4 Hedge fund investors 42 3.4.1 Seed and cornerstone investors 42 3.4.2 Incubator funds 42 3.4.3 Fund of funds 42 3.4.4 Individual investors and family offices 43 3.4.5 Platforms 43 3.5 Principal vehicles 43 3.5.1 The fund vehicle 43 3.5.2 Offshore management vehicle 43 3.5.3 Onshore advisory entity 44 3.6 Types of hedge fund structures 44 3.6.1 Simple hedge fund 44 3.6.2 The master/feeder structure 45 3.6.3 EU UCITS-compliant funds 47 3.7 Establishment of the fund 50 3.7.1 Process 50 3.7.2 Documentation 51 3.8 Management and performance fees 52 3.8.1 Management fee 52 3.8.2 Performance fee 52 3.8.3 Hurdle rate 52 3.8.4 High water mark 53 3.8.5 Redemption fees 53 3.9 Other key terms 53 3.9.1 Liquidity 53 3.9.2 Lock-ups 53 3.9.3 Gating provisions 54 3.9.4 Capacity 54 3.9.5 Early stage or seed investors 54 3.9.6 Key man 54 3.9.7 Equalization 54 3.10 The use of side pockets 55 3.11 Regulation 55 3.12 Some conclusions 56 4 Structural Variants and Alternative Structures to Chapters 2 and 3 57 4.1 Introduction 57 4.2 Pledge funds 57 4.3 ‘Combo’ fund structure 58 4.3.1 Introduction 58 4.3.2 The blind-pool or committed capital fund 58 4.3.3 The pledge fund 58 4.3.4 The combined (or ‘combo’) fund 59 4.4 Investment clubs 60 4.5 Fund-lites 60 4.5.1 Introduction 60 4.5.2 Shorter life of the fund 61 4.5.3 Reduced scope of the investment objective 61 4.5.4 Fees 61 4.5.5 No key man clause 61 4.5.6 No escrow or clawback for carry 61 4.5.7 No re-investment of realized funds 62 4.5.8 No restrictions on future funds 62 4.5.9 Fund-lites: some conclusions 62 4.6 Top-up, bridge and side pockets 63 4.7 Managed accounts 63 4.7.1 Introduction 63 4.7.2 Comparison with funds 64 4.7.3 Advantages 65 4.7.4 Disadvantages 65 4.7.5 Some conclusions 66 4.8 Corporate vehicles 66 4.9 Special purpose acquisition companies (SPACs) or cash shells 67 4.10 UK enterprise investment scheme 68 4.10.1 Introduction 68 4.10.2 Legislation 68 4.10.3 Conditions 69 4.10.4 EIS funds 71 4.10.5 Tax 71 4.11 UK unit trusts 72 4.11.1 Introduction 72 4.11.2 Legislation 72 4.11.3 Authorized unit trusts 72 4.11.4 Undertakings for collective investment in transferable securities 73 4.11.5 Pricing 74 4.11.6 Risk 74 4.11.7 Fees 74 4.11.8 Taxation of unit trusts 74 4.12 Offshore alternatives 76 4.12.1 Unit trusts 76 4.12.2 Cell companies 76 4.13 Jersey property unit trusts 76 4.13.1 Introduction 76 4.13.2 Jersey FS law 77 4.13.3 Types of JPUT 77 4.13.4 Some JPUT conclusions 78 4.14 Some conclusions 79 5 Investment-specific Strategies 81 5.1 Introduction 81 5.2 Private equity/venture capital 81 5.2.1 Introduction 81 5.2.2 Strategies 81 5.3 Public equities 82 5.3.1 Introduction 82 5.3.2 Strategies 82 5.4 Bonds 83 5.5 Credit funds 83 5.5.1 Introduction 83 5.5.2 Senior debt 83 5.5.3 Mezzanine debt 84 5.5.4 Bonds 85 5.5.5 Asset-backed securities (ABSs), collateralized loan obligations (CLOs) and collateralized debt obligations (CDOs) 85 5.5.6 Fund diversity 85 5.6 Shadow banking 86 5.6.1 Introduction 86 5.6.2 SIVs/conduits 86 5.6.3 Perceived risks 87 5.6.4 Proposed added US regulation 88 5.7 Real estate and infrastructure 89 5.7.1 Introduction 89 5.7.2 Real estate strategies 89 5.7.3 Infrastructure strategies 90 5.8 Energy funds 91 5.8.1 Old energy 91 5.8.2 New energy 91 5.9 Commodities funds 92 5.9.1 Introduction 92 5.9.2 Agriculture 92 5.9.3 Metals 92 5.9.4 Energy 93 5.9.5 Direct or indirect investment 93 5.9.6 Regulation 94 5.10 Social impact funds 95 5.10.1 Introduction 95 5.10.2 The rewards of social impact funds 95 5.10.3 The risks of social impact funds 96 5.11 Secondaries funds 96 5.11.1 Introduction 96 5.11.2 Key legal points 97 5.11.3 Aspects of secondaries investment 98 5.11.4 Some criticism of secondaries investment 98 5.12 Derivatives funds 99 5.12.1 Introduction 99 5.12.2 Issues around derivatives 99 5.12.3 Specific regulation 100 5.13 Currency funds 100 5.13.1 Introduction 100 5.13.2 Issues around currency funds 101 5.13.3 Specific regulation 101 5.14 Hedge fund strategies 101 5.15 Some conclusions 101 6 Stock Markets and Listed Funds 103 6.1 Introduction 103 6.2 Listings of private funds 103 6.2.1 Introduction 104 6.2.2 Direct funds 104 6.2.3 Feeder funds 104 6.2.4 Taxation 104 6.3 UK markets and listed fund structures 105 6.3.1 Background 105 6.3.2 The London markets 105 6.3.3 Vehicles in London appropriate for listing investment funds 106 6.3.4 Obtaining a London listing – Main Market and AIM 121 6.4 New York 121 6.4.1 Background 121 6.4.2 The New York markets 121 6.4.3 Vehicles in New York appropriate for listing investment funds 122 6.5 Europe 128 6.5.1 The European markets 128 6.5.2 European exchange traded funds (ETFs) 128 6.6 Alternative offshore stock exchanges 131 6.7 Some conclusions 132 7 Principal ‘Offshore’ Fund Locations 133 7.1 What are the characteristics of an attractive investment fund location? 133 (A) OFFSHORE CROWN DEPENDENCIES 134 7.2 The Channel Islands 134 7.2.1 Background 134 7.2.2 Common structures 134 7.2.3 Regulation of the fund 136 7.2.4 Stock exchange 138 7.2.5 Taxation 138 7.3 The Isle of Man 139 7.3.1 Background 139 7.3.2 Common structures 139 7.3.3 Regulation 140 7.3.4 Taxation 141 7.4 Other Channel Islands 142 7.4.1 Alderney 142 7.4.2 Isle of Sark 142 7.4.3 Herm 142 (B) SPECIFICALLY REGULATED EU FUND JURISDICTIONS 142 7.5 Ireland 142 7.5.1 Background 142 7.5.2 Common structures for funds 142 7.5.3 Regulation 143 7.5.4 Stock exchange 144 7.5.5 Taxation 144 7.6 Luxembourg 144 7.6.1 Background 144 7.6.2 Common structures 144 7.6.3 Regulation 146 7.6.4 Stock exchange 147 7.6.5 Taxation 147 7.7 Malta 147 7.7.1 Background 147 7.7.2 Common structures 148 7.7.3 Regulation 149 7.7.4 Stock exchange 150 7.7.5 Taxation 150 7.8 Cyprus 150 7.8.1 Background 150 7.8.2 Common structures 151 7.8.3 Regulation 151 7.8.4 Stock exchange 152 7.8.5 Taxation 152 7.9 Gibraltar 152 7.9.1 Background 152 7.9.2 Common structures 153 7.9.3 Regulation 153 7.9.5 Taxation 155 (C) REST OF EUROPE 156 7.10 The Netherlands 156 7.10.1 Background 156 7.10.2 Common structures 156 7.10.3 Regulation 157 7.10.4 Stock exchange 157 7.10.5 Taxation 157 7.11 Switzerland 158 7.11.1 Background 158 7.11.2 Common structures 158 7.11.3 Regulation 158 7.11.4 Stock exchange 159 7.11.5 Taxation 159 (D) CARIBBEAN AND ATLANTIC 159 7.12 The Cayman Islands 159 7.12.1 Background 159 7.12.2 Common structures 159 7.12.3 Regulation 160 7.12.4 Stock exchange 161 7.12.5 Taxation 162 7.13 The British Virgin Islands 162 7.13.1 Background 162 7.13.2 Common structures 162 7.13.3 Regulation 163 7.13.4 Taxation 163 7.14 Bermuda 164 7.14.1 Background 164 7.14.2 Common structures 164 7.14.3 Regulation 165 7.14.4 Ongoing reporting 165 7.14.5 Funds outside regulation 166 7.14.6 Segregated Accounts Companies 166 7.14.7 Stock market 167 7.14.8 Taxation 167 (E) ASIA 168 7.15 Hong Kong 168 7.15.1 Background 168 7.15.2 Common structures 168 7.15.3 Regulation 169 7.15.4 Stock exchange 169 7.15.5 Taxation 169 7.16 Singapore 170 7.16.1 Background 170 7.16.2 Common structures 170 7.16.3 Regulation 171 7.16.4 Stock exchange 171 7.16.5 Taxation 171 7.17 Dubai 172 7.17.1 Background 172 7.17.2 Common structures 172 7.17.3 Regulation 172 7.17.4 Stock exchange 173 7.17.5 Taxation 173 7.18 Mauritius 173 7.18.1 Background 173 7.18.2 Common structures 173 7.18.3 Regulation 174 7.18.4 Stock exchange 175 7.18.5 Taxation 175 7.19 Some conclusions 175 8 Principal ‘Onshore’ Fund Locations 177 8.1 Introduction 177 (A) ASIA 178 8.2 People’s Republic of China 178 8.2.1 Background 178 8.2.2 Common structures 178 8.2.3 Regulation 180 8.2.4 Stock exchange 181 8.3 Japan 182 8.3.1 Background 182 8.3.2 Common structures 182 8.3.3 Regulation 183 8.3.4 Stock exchange 184 8.4 India 184 8.4.1 Background 184 8.4.2 Common structures 184 8.4.3 Regulation 185 8.4.4 Stock exchange 186 (B) THE AMERICAS 186 8.5 Canada 186 8.5.1 Background 186 8.5.2 Common structures 187 8.5.3 Regulation 188 8.5.4 Stock exchange 189 8.6 The Federative Republic of Brazil 189 8.6.1 Background 189 8.6.2 Common structures 189 8.6.3 Regulation 190 8.6.4 Stock exchange 190 (C) ONSHORE EUROPEAN JURISDICTIONS 191 8.7 Russian Federation 191 8.7.1 Background 191 8.7.2 Common structures 191 8.7.3 Regulation 193 8.7.4 Stock exchange 193 8.8 Germany 193 8.8.1 Background 193 8.8.2 Common structures 194 8.8.3 Regulation 194 8.8.4 Stock exchange 197 8.9 France 198 8.9.1 Background 198 8.9.2 Common structures 198 8.9.3 Regulation 199 8.9.4 Stock exchange 200 (D) COMMONWEALTH OF AUSTRALIA 200 8.10.1 Background 200 8.10.2 Common structures 201 8.10.3 Regulation 202 8.10.4 Stock exchange 203 (E) ISLAMIC INVESTMENT FUNDS 203 8.11.1 Background 203 8.11.2 Key principles of Sharia’a law 204 8.11.4 Parties to an Islamic investment fund 206 8.11.5 Stock exchange 207 9 Sovereign Wealth Funds, State-sponsored Funds, Pension and Superannuation Schemes and Charities 209 9.1 Introduction 209 9.2 Sovereign wealth funds (SWFs) 209 9.2.1 Definition of sovereign wealth fund 209 9.2.2 Source of sovereign wealth funds 210 9.2.3 Types of SWF investment vehicles 210 9.2.4 SWF investment strategies 211 9.2.5 Taxation of SWFs 212 9.2.6 Transparency of an SWF 213 9.2.7 Key regulation 214 9.3 State-sponsored funds 215 9.3.1 Introduction 215 9.3.2 UK 215 9.3.3 Europe 217 9.3.4 The US 218 9.4 Pensions 219 9.4.1 What is a pension? 219 9.4.2 UK pensions 219 9.4.3 European pensions 221 9.4.4 France 222 9.4.5 Germany 222 9.4.6 US pensions 224 9.4.7 Australia 227 9.4.8 Pension funds as an investor 229 9.5 Charities 230 9.5.1 What is a charity? 230 9.5.2 UK history 231 9.5.3 Investment strategies 232 9.5.4 Taxation 232 9.5.5 Charities as investors 232 9.6 Some conclusions 233 10 Investment Manager Structures 235 10.1 Introduction 235 10.2 General partner in limited partnership structures 235 10.3 Regulation of investment managers 236 10.3.1 The UK Financial Conduct Authority 236 10.3.2 The US Securities Exchange Commission 237 10.3.3 Dodd–Frank Wall Street Reform and Consumer Protection Act 238 10.3.4 The EU Alternative Investment Fund Managers Directive 239 10.4 Structures of management vehicles 240 10.4.1 UK LLP 240 10.4.2 US Limited Liability Company 240 10.4.3 Company 241 10.4.4 GP as an LP structure 241 10.5 Investment manager fees 241 10.5.1 Closed-ended funds 241 10.5.2 Open-ended funds 242 10.5.3 Transactional or monitoring fees 242 10.6 Performance fees and carried interest 243 10.6.1 Closed-ended funds 243 10.6.2 Open-ended funds 244 10.7 Internal economics 244 10.7.1 Salary and fixed draws 245 10.7.2 Bonuses 245 10.7.3 Share and option ownership of investment company 245 10.7.4 Performance fee share and carried interest 245 10.7.5 Co-investment 245 10.7.6 Fund investment or the GP commitment 246 10.8 External ownership of investment manager groups 246 10.9 Listing of investment manager groups 246 10.10 Boards and committees of an investment manager 247 10.10.1 Board 247 10.10.2 Non-executives 247 10.10.3 Executive committee 247 10.10.4 Investment committee 248 10.10.5 Industrialists 248 10.11 Manager or adviser 248 10.11.1 Permanent establishment rules 248 10.11.2 Other drivers 248 10.12 Family offices 249 10.13 Some conclusions 249 11 Taxation Principles in Funds 251 11.1 Introduction 251 11.2 Taxation of funds 251 11.2.1 UK 251 11.2.2 US 253 11.2.3 EU 254 11.2.4 Permanent establishment rules 255 11.3 Investors 257 11.3.1 UK 257 11.3.2 US 259 11.4 Investment manager companies 264 11.4.1 Closed-ended funds 264 11.4.2 Open-ended funds 265 11.5 Principals of an investment manager 266 11.5.1 Equity ownership of investment manager and the fund 266 11.5.2 Management fees 267 11.5.3 Carried interest 267 11.5.4 Performance fees 268 11.6 Some conclusions 268 12 Regulatory Environment 269 12.1 Introduction 269 12.1.1 US, UK and EU regulatory environment 269 12.1.2 Other regulatory environments 269 12.2 UK regulatory environment 269 12.3 Financial conduct authority 270 12.3.1 Statutory objectives 270 12.3.2 Regulation 270 12.3.3 Exemptions 271 12.3.4 Financial promotions 271 12.3.5 Supervision of firms 271 12.3.6 Supervision of individuals 271 12.4 Prudential Regulation Authority 272 12.4.1 Statutory objectives 272 12.4.2 Regulation 272 12.4.3 Supervision of firms 272 12.4.4 Supervision of Individuals 273 12.5 US regulatory environment 273 12.5.1 The United States Securities and Exchange Commission 273 12.5.2 The Commodity Futures Trading Commission 275 12.5.3 The Dodd–Frank Wall Street Reform and Consumer Protection Act 276 12.5.4 The Foreign Account Tax Compliance Act (FATCA) 279 12.5.5 FBAR reporting requirements 279 12.6 EU regulatory environment – the Alternative Investment Fund Managers Directive 280 12.6.1 Background 280 12.6.2 Authorization requirements for AIFMs 281 12.6.3 Authorization requirements for small AIFMs 282 12.6.4 Marketing of AIFMs 283 12.6.5 National private placement 284 12.6.6 Delegation 284 12.6.7 Depositaries 285 12.6.8 Capital requirements 285 12.6.9 Code of conduct 286 12.6.10 Transparency 286 12.6.11 Leverage and asset stripping 286 12.6.12 Remuneration 287 12.6.13 Valuation 287 12.7 Other EU regulation 287 12.7.1 Basel III 287 12.7.2 Solvency II 288 12.7.3 European Market Infrastructure Regulation (EMIR) 289 12.7.4 EU energy infrastructure proposals 289 12.8 Regulation – some conclusions for alternative asset fund managers 290 13 Comparisons and Conclusions 293 13.1 Introduction 293 13.2 Evolving structural drivers 293 13.2.1 Tax efficiency 293 13.2.2 Regulation 294 13.3 Core structures compared 296 13.3.1 Key differences between private equity funds, hedge funds and quoted funds 296 13.4 The paperwork 299 13.5 The actors 299 13.6 The supporting actors 301 13.7 What is trending? 302 13.7.1 Internet 302 13.7.2 Multi-immediate media 302 13.7.3 Onshore/offshore debunked 303 13.7.4 Change of focus 304 13.7.5 Masters of the Universe 305 13.7.6 Paradigm bashing 305 13.7.7 Book conclusion 305 Appendix I Definitions 307 Appendix II Abbreviations 311 Appendix III Acknowledgements 319 Index 327

Read more less

Book SynopsisUse powerful C++ algorithms and Object Oriented Programming (OOP) to aid in hedge fund decision making Low interest rates, overcrowded markets and greater regulatory oversight are just some of the many reasons it is close to impossible for hedge funds to draw competitive returns. The solution for many hedge fund managers, quantitative investment analysts and risk managers is to adopt new technologies, platforms and programming languages to better manage their risks and maximise the benefits of their return profiles. Hedge Fund Modelling and Analysis is a full course in the latest analytic strategies for hedge fund investing, complete with a one-of-a-kind primer on both C++ and object oriented programming (OOP). Covering both basic and risk-adjusted performance measures, this practitioner''s guide enables you to manage risk easily and make the most of key statistics with simple and advanced analysis techniques. This highly anticipated third book in the widely useTable of ContentsPreface xi CHAPTER 1 Essential C++ 1 1.1 A Brief History of C and C++ 1 1.2 A Basic C++ Program 2 1.3 Variables 4 1.3.1 Characters and Strings 5 1.3.2 Variable Declarations 8 1.3.3 Type Casting 9 1.3.4 Variable Scope 10 1.3.5 Constants 11 1.4 Operators 12 1.4.1 The Assignment Operator 12 1.4.2 Arithmetic Operators 14 1.4.3 Relational Operators 15 1.4.4 Logical Operators 16 1.4.5 Conditional Operator 17 1.5 Input and Output 18 1.6 Control Structures 21 1.6.1 Branching 21 1.6.2 Looping 25 1.6.3 The for Loop 25 1.6.4 The while Loop 27 1.6.5 The do…while Loop 29 1.7 Arrays 30 1.8 Vectors 31 1.9 Functions 33 1.9.1 Call-by-Value vs. Call-by-Reference 36 1.9.2 Overloading Functions 39 1.10 Object Oriented Programming 41 1.10.1 Classes and Abstract Data Types 42 1.10.2 Encapsulation and Interfaces 43 1.10.3 Inheritance and Overriding Functions 44 1.10.4 Polymorphism 45 1.10.5 An Example of a Class 46 1.10.6 Getter and Setter Methods 49 1.10.7 Constructors and Destructors 52 1.10.8 A More Detailed Class Example 55 1.10.9 Implementing Inheritance 61 1.10.10 Operator Overloading 64 CHAPTER 2 The Hedge Fund Industry 71 2.1 What are Hedge Funds? 71 2.2 The Structure of a Hedge Fund 74 2.2.1 Fund Administrators 74 2.2.2 Prime Brokers 75 2.2.3 Custodian, Auditors and Legal 76 2.3 The Global Hedge Fund Industry 77 2.3.1 North America 79 2.3.2 Europe 80 2.3.3 Asia 81 2.4 Specialist Investment Techniques 82 2.4.1 Short Selling 82 2.4.2 Leverage 83 2.4.3 Liquidity 84 2.5 Recent Developments for Hedge Funds 85 2.5.1 UCITS Hedge Funds 85 2.5.2 The European Passport 88 2.5.3 Restrictions on Short Selling 88 CHAPTER 3 Hedge Fund Data Sources 91 3.1 Hedge Fund Databases 91 3.2 Major Hedge Fund Indices 92 3.2.1 Non-Investable and Investable Indices 92 3.2.2 Dow Jones Credit Suisse Hedge Fund Indices (www.hedgeindex.com) 94 3.2.3 Hedge Fund Research (www.hedgefundresearch.com) 100 3.2.4 FTSE Hedge (www.ftse.com) 102 3.2.5 Greenwich Alternative Investments (www.greenwichai.com) 104 3.2.6 Morningstar Alternative Investment Center (www. morningstar.com/advisor/alternative-investments.htm) 108 3.2.7 EDHEC Risk and Asset Management Research Centre (www.edhec-risk.com) 112 3.3 Database and Index Biases 113 3.3.1 Survivorship Bias 113 3.3.2 Instant History Bias 115 3.4 Benchmarking 115 3.4.1 Tracking Error 116 CHAPTER 4 Statistical Analysis 119 4.1 The Stats Class 119 4.2 The Utils Class 120 4.3 The Import Class 123 4.4 Basic Performance Plots 127 4.4.1 Value Added Index 127 4.4.2 Histograms 130 4.5 Probability Distributions 131 4.5.1 Populations and Samples 132 4.6 Probability Density Function 133 4.7 Cumulative Distribution Function 134 4.8 The Normal Distribution 134 4.8.1 Standard Normal Distribution 136 4.9 Visual Tests for Normality 136 4.9.1 Inspection 136 4.9.2 Normal Probability Plot 137 4.10 Moments of a Distribution 138 4.10.1 Mean and Standard Deviation 138 4.10.2 Skew 141 4.10.3 Kurtosis 142 4.11 Covariance and Correlation 146 4.12 Linear Regression 158 4.12.1 Coefficient of Determination 163 4.12.2 Residual Plots 167 CHAPTER 5 Performance Measurement 173 5.1 The PMetrics Class 173 5.2 The Intuition Behind Risk-Adjusted Returns 174 5.2.1 Risk-Adjusted Returns 182 5.3 Absolute Risk-Adjusted Return Metrics 184 5.4 The Sharpe Ratio 187 5.5 Market Models 191 5.5.1 The Information Ratio 192 5.5.2 The Treynor Ratio 197 5.5.3 Jensen’s Alpha 203 5.5.4 M-Squared 205 5.6 The Minimum Acceptable Return 207 5.6.1 The Sortino Ratio 207 5.6.2 The Omega Ratio 211 CHAPTER 6 Mean-Variance Optimisation 213 6.1 The Optimise Class 213 6.2 Mean-Variance Analysis 214 6.2.1 Portfolio Return and Variance 214 6.2.2 The Mean-Variance Optimisation Problem 229 6.2.3 The Global Minimum Variance Portfolio 244 6.2.4 Short Sale Constraints 246 CHAPTER 7 Market Risk Management 247 7.1 The RMetrics Class 247 7.2 Value-at-Risk 248 7.3 Traditional VaR Methods 251 7.3.1 Historical Simulation 251 7.3.2 Parametric Method 254 7.3.3 Monte-Carlo Simulation 261 7.4 Modified VaR 263 7.5 Expected Shortfall 266 7.6 Extreme Value Theory 271 7.6.1 Block Maxima 272 7.6.2 Peaks Over Threshold 272 References 277 Index 279

Read more less

Book SynopsisConstruct a portfolio that is sure to outperform market averages Warren Buffett had it right all along. Now it''s your turn to learn how to construct a portfolio that is sure to outperform the market averages, as well as almost every professional money manager in the world. Warren Buffett''s method of predictability can determine a future target price, which in turn determines his all-important purchase price. However, Buffett doesn''t draw conclusions of his predictability method relative to the future total returns of portfolios. That''s where Buffett and Beyond comes in, taking Buffett''s method one giant step beyond, proving that if you select a portfolio of stocks using the predictability method in this book, you will outperform 96% of professional money managers over the long term. In addition to the information in the book, readers will have access to a password-protected website that includes tutorial videos, PowerPoint slides, free trial access Table of ContentsPreface: From Then Until Now xiii Introduction: A Sea Story xvii Chapter 1: The Purpose of This Book—Your Journey 1 Chapter 2: About Warren Buffett 5 Chapter 3: Determining the Earning Capacity of a Company (Now Really, Can It Be This Easy?) 11 The Beach Factor 12 Clean Surplus 13 Determining an Efficient Company 14 Take Your Bank Account 14 Bonds 15 Earning Capacity 15 How to Determine the Operating Efficiency of a Company 17 Sooo Important 19 You See . . . ROE Tells Us Everything 19 Let’s Ask Warren 20 Summary—the Key to the Investing Business 21 Why Hasn’t the Entire World Figured This Out Yet? 21 You Will Learn 22 Chapter 4: My Theory of Why Most Money Managers of the World Cannot Outperform the Market Averages 25 My Contest—Beware How You Select the Random Portfolio 29 One Step Beyond Buffett 30 You Don’t Have to Worry 30 Fun with Our Portfolio Reviews 31 In Summary 32 Chapter 5: A Very Simple Income Statement and an Even Simpler Balance Sheet 35 The Income Statement 36 The Balance Sheet 36 Tying Together the Income Statement and Balance Sheet 37 Chapter 6: The Return on Equity Ratio 41 This Chapter and the Next and the Next 43 Chapter 7: The Return Portion of the Return on Equity Ratio 47 The Income Statement: Return 47 Chapter 8: The Equity Portion of the Return on Equity 53 Earnings 55 Accounting Statements and the Link between Them 55 The General Motors Story 57 The Central Flaw of Traditional Accounting 60 Let’s Not Forget the Main Question 60 Addendum to The General Motors Story 61 Chapter 9: How to Determine an Equitable Equity Number 65 Let’s Review Just a Bit 65 Our New Return on Equity Equation 67 What Does Warren Buffett Say about All This? 69 Chapter 10: The Predictability of Finance Valuation Models 71 Efficiency Is the Key 73 College and Finance Valuation Models—They Just Don’t Work Very Well 74 Chapter 11: Clean Surplus ROE—the Only Comparable Efficiency Ratio 79 Clean Surplus 81 I Forget, What Are We Looking For? Let’s Review! 83 Chapter 12: What Buffett Looks for in a Company, or How Clean Surplus Accounting Recognizes the Quality of a Company 87 Buffett 88 The Consumer Monopoly versus the Commodity Type of Business 89 The Commodity Type of Business: Companies Buffett Avoids 89 The Consumer Monopoly: The Type of Business Buffett Loves 92 Chapter 13: General Electric Then and Now 97 The Purchase Price 97 Back to Basics 99 A Very Important Point 100 Back to the Good Bank 100 Beware, Beware, Beware 102 A Real Stock 103 The P/E Ratio 105 Back to the Future 107 Let’s Discount Back—the All Important Purchase Price 108 Important Note: Approximately 110 Very Important Addendum 111 Chapter 14: General Motors Then and Now 115 Let’s Look at General Motors 116 High ROE 116 Consistency Up to 2002 117 Compare 118 The Blind Kid—A Sea Story 119 A Lesson to Be Learned 120 So You See, Folks 121 Addendum to the General Motors Saga 121 Chapter 15: The Beginning: The Initial Research 125 Why Work with the Dow 30? 126 Constructing the Portfolio: My First Research into Clean Surplus 127 Methodology 127 1987: The Year of the Anomaly 129 Buffett the Anomaly 129 More Parameters: The Simple Rules 130 The Test Period Parameters 130 The Results 131 Compounded Returns 132 Is There a Correlation Between the ROEs and the Returns? 133 Getting Published in an Academic Journal 135 Chapter 16: Continuing Research: The Doctoral Research on the S&P 500 137 Finally, a Lead for Clean Surplus Accounting—Buffett, Graham, Ohlson 138 The Results of the Research 139 Methodology 139 Notice the Difference 141 Standardized Against the Market 142 Portfolio Construction 142 Results: First Test Period 143 Results: Second Test Period 144 Bias 144 Summary of Results 145 Chapter 17: Rules for Structuring a Great Growth Portfolio 149 Debt 153 Chapter 18: Great, Great Job, but You’re Fired 155 A New Definition 156 The Research Begins 156 The First Class 157 To Teach or Not to Teach? 159 Chapter 19: Stocks on Our Radio Show 163 Back in 2012 163 The Structure of This Report 165 Chapter 20: Stories of Audience Hecklers 169 The Know]It]All Half]Back 170 Chapter 21: A Great Dividend Income and Growth Strategy—Part I: The Economic Spectrum of Dividend Stocks 173 Portfolio Parameters 175 The Four Stages of the Business Life Cycle 176 The Maturity Stage 179 Chapter 22: A Great Dividend Income and Growth Strategy—Part II: Selecting Stocks That Are Growing Their Dividends for Our Portfolio 183 Chapter 23: A Great Dividend Income and Growth Strategy—Part III: Selecting Stocks That Are Growing in Price for Our Portfolio 189 Philip Morris International 192 AT&T 194 A Pretty Good Portfolio Stock 195 Chapter 24: Enhanced Income 199 Covered Option Writing 201 What Does This Have to Do with Options? 202 What? Give Up My Stock? Shame on You! 203 A Bit of Technical Analysis 204 Chapter 25: Portfolio Insurance 207 What Does Buffett Do? 209 So What Can We Do? 209 Ok, So What Can We Do to Take the Guessing out of Investing? 210 The Amazing Thing About Portfolio Insurance 210 Market Crash Mentality 211 Back to the Crash Mentality 211 Which Scenario Do You Prefer? 211 How Do We Insure Our Portfolios? 212 Cash, Cash, Cash 213 But How Much Cash? 213 What Do We Mean by Market Conditions? 215 Chapter 26: What Have You Learned? A Summary 217 Dividend Income and Growth Strategy 220 Portfolio Insurance and Enhanced Income 221 Putting the Odds of Success on My Side 222 Chapter 27: We Won’t Leave You Out There Alone 225 www.wiley.com/go/buffettandbeyond 225 The Weekly Video 226 The Computer Program 226 Tutorial Videos 227 For Individual Investors 227 For Professional Money Managers, Wealth Managers, and Investment Advisors 228 About the Author 231 Index 233

Read more less

Book SynopsisDrive profit and manage risk with expert guidance on trade processing The Trade Lifecycle catalogues and details the various types of trades, including the inherent cashflows and risk exposures of each. Now in its second edition, this comprehensive guide includes major new coverage of traded products, credit valuation adjustment, regulation, and the role of information technology. By reading this, you'll dissect a trade into its component parts, track it from preconception to maturity, and learn how it affects each business function of a financial institution. You will become familiar with the full extent of legal, operational, liquidity, credit, and market risks to which it is exposed. Case studies of real projects cover topics like FX exotics, commodity counterparty risk, equity settlement, bond management, and global derivatives initiatives, while the companion website features additional video training on specific topics to help you build a strong backgroundTable of ContentsForeword from the First Edition xvii Foreword to the Second Edition xix Preface xxi Acknowledgements xxiii About the Author xxv PART ONE Products and the Background to Trading CHAPTER 1 Trading 3 1.1 How and why do people trade? 3 1.2 Factors affecting trade 3 1.3 Market participants 4 1.4 Means by which trades are transacted 5 1.5 When is a trade live? 7 1.6 Consequences of trading 7 1.7 Trading in the financial services industry 8 1.8 What do we mean by a trade? 10 1.9 Who works on the trade and when? 11 1.10 Summary 12 CHAPTER 2 Risk 13 2.1 The concept of risk 13 2.2 Risk is inevitable 13 2.3 Quantifying risk 14 2.4 Methods of dealing with risk 15 2.5 Managing risk 15 2.6 Problems of unforeseen risk 16 2.7 Summary 16CHAPTER 3 Understanding Traded Products – Follow the Money 17 3.1 Spot trades 18 3.2 Future (forward) 20 3.3 Loan 21 3.4 Deposit 23 3.5 Swap 23 3.6 Foreign exchange swap 25 3.7 Equity spot 26 3.8 Bond spot 27 3.9 Option 27 3.10 Credit default swap 30 3.11 Summary 31 CHAPTER 4 Asset Classes 33 4.1 Interest rates 33 4.2 Foreign exchange (Forex or FX) 40 4.3 Equity 44 4.4 Bonds and credit 46 4.5 Commodities 53 4.6 Trading across asset classes 58 4.7 Summary 59 CHAPTER 5 Derivatives, Structures and Hybrids 61 5.1 Linear 61 5.2 Nonlinear 62 5.3 Some option terminology 66 5.4 Option valuation 67 5.5 Exotic options 67 5.6 Structures and hybrids 69 5.7 Importance of simpler products 70 5.8 Trade matrix 71 5.9 Summary 72 CHAPTER 6 Liquidity, Price and Leverage 73 6.1 Liquidity 73 6.2 Price 75 6.3 Leverage 76 6.4 Summary 79 PART TWO The Trade Lifecycle CHAPTER 7 Anatomy of a Trade 83 7.1 The underlying 83 7.2 General 83 7.3 Economic 84 7.4 Sales 84 7.5 Legal 84 7.6 Booking 85 7.7 Counterparty 85 7.8 Timeline 86 7.9 Summary 87 CHAPTER 8 Trade Lifecycle 89 8.1 Pre execution 89 8.2 Execution and booking 91 8.3 Confirmation 94 8.4 Post booking 96 8.5 Settlement 97 8.6 What happens overnight 101 8.7 Changes during lifetime 105 8.8 Reporting during lifetime 110 8.9 Exercise 110 8.10 Maturity 112 8.11 Example trade 113 8.12 Summary 115 CHAPTER 9 Cashflows and Asset Holdings 117 9.1 Holdings 119 9.2 Value of holding 120 9.3 Reconciliation 121 9.4 Consolidated reporting 122 9.5 Realised and unrealised P&L 122 9.6 Diversification 122 9.7 Bank within a bank 123 9.8 Custody of securities 123 9.9 Risks 124 9.10 Summary 124 CHAPTER 10 Risk Management 125 10.1 Traders 125 10.2 Risk control 126 10.3 Trading management 126 10.4 Senior management 126 10.5 How do risks arise? 126 10.6 Different reasons for trades 128 10.7 Hedging 128 10.8 What happens when the trader is not around? 128 10.9 Types of risk 130 10.10 Trading strategies 132 10.11 Hedging strategies 133 10.12 Summary 134 CHAPTER 11 Market Risk Control 135 11.1 Various methodologies 135 11.2 Need for risk 139 11.3 Allocation of risk 139 11.4 Monitoring of market risk 140 11.5 Controlling the risk 140 11.6 Responsibilities of the market risk control department 141 11.7 Limitations of market risk departments 142 11.8 Regulatory requirements 143 11.9 Summary 145 CHAPTER 12 Counterparty Risk Control 147 12.1 Reasons for non-fulfilment of obligations 147 12.2 Consequences of counterparty default 148 12.3 Counterparty risk over time 148 12.4 How to measure the risk 149 12.5 Imposing limits 152 12.6 Who is the counterparty? 153 12.7 Collateral 153 12.8 Activities of the counterparty risk control department 154 12.9 What are the risks involved in analysing credit risk? 157 12.10 Payment systems 158 12.11 Summary 160 CHAPTER 13 Accounting 161 13.1 Balance sheet 161 13.2 Profit and loss account 164 13.3 Financial reports for hedge funds and asset managers 168 13.4 Summary 169 CHAPTER 14 P&L Attribution 171 14.1 Benefits 171 14.2 The process 172 14.3 Example 173 14.4 Summary 176 CHAPTER 15 People 177 15.1 Revenue generation 177 15.2 Activities that support revenue generation 179 15.3 Control 189 15.4 Summary 200 CHAPTER 16 Regulation 201 16.1 Purpose of regulation 201 16.2 What regulators require 202 16.3 The problems 204 16.4 Risk-weighted assets 205 16.5 Credit valuation adjustment (CVA) 207 16.6 Summary 213 PART THREE What Really Happens CHAPTER 17 Insights into the Real World of Capital Markets – Here be Dragons! 217 17.1 How it used to be 217 17.2 Clash of cultures 219 17.3 The equality of money 219 17.4 The politics of money 220 17.5 The good 222 17.6 The bad 222 17.7 The ugly 223 17.8 Where are we heading? 223 17.9 Summary 224 CHAPTER 18 Case Studies 225 18.1 Case study 1 – Bonds 225 18.2 Case study 2 – Front office foreign exchange 235 18.3 Case study 3 – Equity confirmations project 247 18.4 Summary 252 CHAPTER 19 The IT Divide 253 19.1 What is the IT divide? 253 19.2 What problems does it cause? 255 19.3 IT in the middle 255 19.4 Improper use of IT 256 19.5 Organisational blockers 257 19.6 IT blockers 258 19.7 How to bridge the gap 259 19.8 Keeping up with change 260 19.9 What does the business want from IT? 261 19.10 What IT wants from the business 263 19.11 Particular challenges of the financial sector 264 19.12 Example of a good project 265 19.13 Example of a bad project 266 19.14 Summary 266 CHAPTER 20 The Role of the Quantitative Analyst 267 20.1 What is a quant? 267 20.2 Where do quants work? 267 20.3 Tools of the trade 269 20.4 Place in organisation 270 20.5 Where should quants sit? 270 20.6 The boundaries of Quantland 271 20.7 What does IT think of quants? 273 20.8 Different types of quants 274 20.9 Getting the job done 275 20.10 Summary 275 PART FOUR Behind the Scenes CHAPTER 21 Developing Processes for New Products (and Improving Processes for Existing Products) 279 21.1 What is a process? 279 21.2 The status quo 279 21.3 How processes evolve 280 21.4 Inventory of current systems 282 21.5 Coping with change 284 21.6 Improving the situation 284 21.7 Inertia 287 21.8 Summary 288 CHAPTER 22 New Products 289 22.1 Origin of new products 289 22.2 Trial basis 290 22.3 New trade checklist 292 22.4 New product evolution 294 22.5 Risks 294 22.6 Summary 295 CHAPTER 23 Testing 297 23.1 What is testing? 297 23.2 Why is testing important? 298 23.3 Who does testing? 298 23.4 When should testing be done? 299 23.5 What are the types of testing? 300 23.6 Fault logging 302 23.7 Risks 304 23.8 Summary 305 CHAPTER 24 Data 307 24.1 Common characteristics 307 24.2 Database 308 24.3 Data 308 24.4 Bid/offer spread 310 24.5 Curves and surfaces 310 24.6 Market data 313 24.7 Back testing 317 24.8 How can data go wrong? 317 24.9 Typical data sources 320 24.10 How to cope with corrections to data 321 24.11 Data integrity 322 24.12 The business risks of data 324 24.13 Summary 325 CHAPTER 25 Reports 327 25.1 What makes a good report? 327 25.2 Reporting requirements 328 25.3 When things go wrong 333 25.4 Redundancy 334 25.5 Control 335 25.6 Enhancement 335 25.7 Security 335 25.8 Risks 335 25.9 Summary 336 CHAPTER 26 Calculation 337 26.1 What does the calculation process actually do? 337 26.2 The calculation itself 343 26.3 Sensitivity analysis 347 26.4 Bootstrapping 348 26.5 Calculation of dates 349 26.6 Calibration to market 351 26.7 Testing 351 26.8 Integrating a model within a full system 352 26.9 Risks associated with the valuation process 352 26.10 Summary 352 PART FIVE Summary of Risks APPENDIX A Operational Risks 355 APPENDIX B Human Risks 359 APPENDIX C Control Risks 363 APPENDIX D Processing Risks 367 APPENDIX E Organisational Risks 373 Recommended Reading 377 Index 379

Read more less

Book SynopsisA hands-on guide to navigating the new fuel markets Fuel Hedging and Risk Management: Strategies for Airlines, Shippers and Other Consumers provides a clear and practical understanding of commodity price dynamics, key fuel hedging techniques, and risk management strategies for the corporate fuel consumer. It covers the commodity markets and derivative instruments in a manner accessible to corporate treasurers, financial officers, risk managers, commodity traders, structurers, as well as quantitative professionals dealing in the energy markets. The book includes a wide variety of key topics related to commodities and derivatives markets, financial risk analysis of commodity consumers, hedge program design and implementation, vanilla derivatives and exotic hedging products. The book is unique in providing intuitive guidance on understanding the dynamics of forward curves and volatility term structure for commodities, fuel derivatives valuation and counterpaTable of ContentsPreface xiii Acknowledgments xix About the Authors xxi CHAPTER 1 Energy Commodities and Price Formation 1 Energy as a Strategic Resource 1 Energy as a Tradable Commodity 3 Energy Commodities 5 Crude Oil 5 Oil Products 8 Natural Gas 11 Coal 11 Price Drivers in Energy Markets 12 Geopolitical Risks 12 The Geopolitical Chessboard – The Petrodollar System and Rising China 12 Long-Term Supply and Demand 15 Short-Term Supply and Demand: Supply Chain and Infrastructure 17 Financialization of Commodities 19 Market-Specific Price Drivers 19 Summary 20 CHAPTER 2 Major Energy Consumers and the Rationale for Fuel Hedging 23 Energy Market Participants 23 Risks Faced by Fuel Consumers – The Case of the Airline Industry 27 Airline Industry – Metrics and Operational Risks 27 Airline Industry – Financial Risks 30 Risks Faced by Other Major Fuel Consumers 35 Shipping Companies 35 Land Transportation 37 Oil Refining, Petrochemicals, and Power Generation 37 Industrial Users of Energy Commodities 38 The Case for Hedging 39 The Effect of Hedging on Airline Stock Price Volatility 39 Commodity Derivative Markets 41 A Brief History of Commodity Markets 42 Commodity Spot Markets and the Need for Standardization 43 Forward Contracts 44 Futures Contracts 45 Option Contracts 50 Summary 53 Appendix A 54 CHAPTER 3 Developing Fuel Hedging Strategies 55 The Rationale for Commodity Hedging 55 Developing a Fuel Hedging Program 57 Risk Identification and Assessment 57 Types of Risk 58 Risk Identification 59 Forecasting Prices and Conducting Simulations 59 Articulating the Firm’s Risk Appetite 60 Setting Objectives for Fuel Hedging and the Scope of Hedging 60 Identifying Risk Managers within the Organization 61 Determining the Scope of the Hedge Program 61 Implementation of Hedging 62 Selecting the Fuel Cost Management Method 62 Identifying the Underlying to Hedge with and Basis Risk 63 Quantity and Tenor of Hedging 66 Selection of Instruments for Hedging 67 Market Risk 68 Management of the Unwanted Risks of a Portfolio 68 Credit Risk 68 Liquidity Risk 69 Operational Risk 69 Legal and Reputational Risk 70 Monitoring and Calibration of the Hedging Program 70 Template for a Risk Management Policy 71 The Airline Industry – Trends in Fuel Risk Management 71 Magnitude of Fuel Price Risk 71 Underlyings and Hedging Instruments 73 Quantity and Tenor of Hedging 74 Recent Developments 75 Summary 75 CHAPTER 4 Shipping and Airlines – Basics of Fuel Hedging 77 Spot–Forward Relationships 77 Theories on the Shape of Forward Curves 78 Spot–Forward Relationships for Investment Assets 79 Spot–Forward Relationships for Commodities 80 Spot and Futures Volatility 81 Options 82 Call and Put Options 83 Put–Call Parity 84 Option-Based Hedging for a Shipping Company 85 Implied Volatility and the Black–Scholes Model 86 The Black–Scholes–Merton Model 88 Black’s Model for Pricing Options on Futures Contracts 89 The Greeks 89 Delta 90 Gamma 92 Theta 92 Vega 94 Rho 94 Higher-Order Greeks 95 Black’s Model Option Greeks 95 Asian Swaps and Options 96 Asian Swap-Based Hedging for a Shipping Company 97 Option Structures 97 Call Spreads and Put Spreads 97 Collars, Three-Ways, and Calendar Spread Options 99 Straddles, Strangles, and Butterflies 100 Capped Forwards 102 Capped Swap Usage for a Shipping Company 103 Derivatives Pricing 104 Stochastic Processes for Asset Prices – An Introduction 104 Brownian Motion and Wiener Processes 104 Itô’s Lemma 106 Option Pricing Using the Black–Scholes–Merton Formula 107 Asian Option Pricing 109 Summary 112 CHAPTER 5 Advanced Hedging and Forward Curve Dynamics 113 Swap and Vanilla Option-Based Structures 113 Zero-Cost Structures and the Usage of Options 114 Leveraged Swaps 114 Capped Swaps 116 Floored Swaps 117 The Volatility Surface 118 Multi-option Structures 119 Zero-Cost Collar 120 Three-Ways 120 Risk Reversals and their Hedging 121 Early-Expiry Options and Instantaneous Volatility Term Structures 122 The Samuelson Effect and the Storage Theory 122 Implied Volatility of Energy Futures Contracts 123 Early-Expiry Profile Construction 124 Commodity Swaptions and Extendible Swaps 127 Usage of Commodity Swaptions and the Reasons for their Popularity 127 Swaption vs. a Basket of Options 128 Understanding Commodity Futures Term Structures 133 The Normal Backwardation or Keynesian Theory 133 The Theory of Storage 134 Term-Structure Models 135 Schwartz’s One-Factor Model 135 Schwartz’s Two-Factor Model 136 Gabillon’s Model 137 Gabillon’s Stochastic Equation for Futures 138 Early-Expiry Profile Using Gabillon’s Model 139 Importance of Early-Expiry Profile for Exotic Products 139 Summary 140 CHAPTER 6 Exotic Hedging and Volatility Dynamics 141 Extendible Option Structures 142 Extendible Collar 142 Extendible Three-Ways 143 Cancellable – Extendible Parity 144 Pricing Extendible Option Structures 146 Volatility Models 150 Stochastic Volatility Models 150 Barrier Option-Based Structures 152 Knock-Out Options and Knock-In Options 152 Relationship between KI and KO Options 154 Knock-Out Swaps 154 Airbag Structure 154 KIKOs and Combinations of KI and KO Options 155 Accumulator Structures 156 European or Asian-Style Barrier Options 157 Barrier Payouts and Non-linearity – Digital Options and Replication 157 The Reflection Principle 160 Barrier Options Under the Black–Scholes Framework 161 Put–Call Symmetry 163 MTM Analysis of Barrier Options Under the Black–Scholes Framework 163 Pricing and Risk Management of Barriers with Real-World Constraints 165 Barrier Options on a Nearby Futures Contract 167 Local Volatility Models 168 Bermudan Extendible Structures 170 Valuation of Bermudan Extendibles 174 Longstaff–Schwartz Method and Exercise Boundaries 174 Extendible vs. Auto-callable Transactions 177 Bermudan Extendibles and the Forward Skew 177 The Inverse Leverage Effect in Commodities Markets 179 Target Redemption Structures 180 Target Redemptions and the 2008 Debacle 182 Defining Leverage 183 Target Redemption Pricing and Risk Management 184 The Mean-Reversion Trap 185 Target Redemption and Trading Risks 186 Sticky Strike and Sticky Delta 187 Sticky Strike Approach 187 Sticky Delta or Sticky Moneyness 188 Gamma/Theta Ratio 188 Summary 190 CHAPTER 7 Fuel Hedging and Counterparty Risk 191 The Importance of Valuation and Transaction Monitoring 191 Market Risk Management 192 Fuel Hedgers: Lottery Tickets and Spring Cleaning 193 Value at Risk 194 Liquidity Risk 195 Counterparty Risk 195 Credit Risk and Counterparty Risk 196 Expected Exposure 198 Potential Future Exposure 198 Measurement of Counterparty Risk for a Portfolio of Trades 198 Peak PFE 198 Common PFE Misconceptions and Pitfalls 200 Credit Exposure Optimization Techniques 202 Bilateral Netting Agreements 202 Credit Support Annexes 203 CSA Negotiations – Key Considerations 203 Funding Valuation Adjustment 206 Fuel Hedgers and FVA 207 The FVA Debate 209 The Price of Counterparty Credit Risk 209 Credit Derivatives and Credit Default Swaps 210 Credit Valuation Adjustment 212 Common CVA Mis-steps 213 Gap Options and Collateralization Agreements 213 Debt Valuation Adjustment 214 Fuel Hedgers and Debt Valuation Adjustments 214 The Case for Bilateral CVA 215 Wrong-Way Risk 216 Counterparty Credit Risk Hedging 216 Contingent CDS 216 Capped Exposure Derivatives 217 Summary 217 CHAPTER 8 Conducting Scenario Analysis 219 Scenario Analysis for Vanilla Products 220 Scenario Analysis for Path-Dependent Products 224 MTM-Based Scenario Analysis and Potential Future Exposures 229 Beyond Payoffs and MTMs – Collateralization and Funding Requirement Analysis 230 Hedge Effectiveness 231 Summary 233 CHAPTER 9 Financing and Risk Management: Bundled Solutions 235 Structured Aviation Finance Overview 235 Airline Financing via Debt and Aircraft Leases 238 Term Loans 239 Export Credit Agency Debt 240 Leases 240 Rationale for Combining Hedging and Financing 243 Reduction of Default Risk through Hedging 244 Oil-Linked Financing Structures 245 Flexible Oil-Insulated Lease 246 Cancellable Hedged Loans as Interest Cheapeners 250 Summary 252 CHAPTER 10 Applied Fuel Hedging – Case Studies 253 Case Study 1: YM Cargo Inc. 253 Business Risks 253 Operational Mitigants 254 Risk Appetite 255 Hedge Program Objectives and Scope 255 Implementation of Hedging 256 Portfolio Monitoring 260 Case Study 2: Worldwide Airlines 260 Evolution of WWA’s Hedging Strategy 262 Hedging Transactions Executed by WWA 264 Hedge Portfolio Analysis 267 Credit Lines and Collateralization Issues 269 Restructuring WWA’s Portfolio 271 Counterparty Risk and Funding Considerations for BMC 272 Summary 276 Bibliography 277 Index 281

Read more less

Book SynopsisLook inward for the missing piece to your trading strategy The Art of Trend Trading bucks the trend of technicality to show readers how instinct and strategy can unite to bring about consistent investment success. Rather than diving ever-deeper into the overdone world of complicated modeling and forecasting techniques, trader, CEO, and bestselling author Michael Parness explains how making intuition a part of your investment strategy tends to result in more long-term profit. Using animal spirits as a metaphor and tool, Parness helps readers understand how their natural tendencies may run counter to their strategy, and how this dichotomy may be the shackle holding them back from true market success. Readers will learn how this perspective lifted Parness from homelessness to making millions in both Bull and Bear markets, and will start developing their own market instinct as they refine and tune into their own natural intuition. Everyone''s looking for the ultimate syTable of ContentsForeword ixMichael Di Gioia Chapter 1: Wishing You a Slow Rise 1 Setting Goals 2 1 Percent aDay Keeps the Ka-Chingos Comin’! 3 Don’t Be in Such a Rush to Lose Your Money 4 Chapter 2: Bear with Me 5 The Achilles Have It 6 Identifying Your Achilles’ Heel 6 Chapter 3: Breakout City and Riding the Horse to Gains 11 The 10 a.m. Intraday Break 11 The Play 12 The Technical Breakout 16 The 52-Week-High Breakout 16 Buy Low and Sell High? 18 The All-Time-High Blue Skies Breakout 24 Chapter 4: Power Trading 25 Be You…Be Powerful! 26 Intraday Primer 26 Time Frames 29 9:30–10:00 a.m.: Gaps 30 10:00–1:00 p.m.: 10 a.m. Rule in Effect 32 1:00–2:30 p.m.: Lunchtime Lull/Reversal 33 2:30–3:20 p.m.: Post-Lunch Activity 34 3:20–3:40 p.m.: Afternoon Lull 34 3:40–4:00 p.m.: Market on Close/End of Day 35 8:00–9:30 a.m./4:00–8:00 p.m.: After-Hours, News Rules! 35 Time Frame Examples 37 News Trader 38 Swing Trades 40 Gap Me, Baby 41 Laggards 41 Market Close 42 After Hours 42 Chapter 5: $12,500 to $3.8 Million 45 Bull, Bear—I Don’t Care! 45 Chapter 6: Options (Pretty) Basic Primer 49 What Are Options? 50 Underlying Assets 51 Rights and Obligations 52 Weekly Options 55 Option Strategies Introduction 60 Spreads 62 Chapter 7: Trading Options 65 Out-of-the-Money Options 65 More than One Month Out 69 Leveraging and Hedging 71 Index Options 73 LEAPs 77 Straddles 78 Strangles 82 Bull Spread 83 Bear Spread 85 Chapter 8: Trading Gaps Animal Spirit Guide (Stalking, Leopard) 87 What Are Gaps? 87 Planning Your Gap Trade 92 Daily Gap Goals! 92 Contents vii Objectives 94 News/News/News 95 Come Out, Come Out, Wherever You Are, Mr. Gap! 96 Order Flow 97 Managing Risk 98 Know When to Hold ‘Em or Fold ‘Em 100 Believe! 102 Trading Gap Downs 103 Trading Gap Ups 106 Chapter 9: My Favorite Animal Spirits 109 Gap Fades 110 Earnings Runs 113 Earnings Straddles 121 FOMC Fades 123 10:00 a.m. Rule Plays 126 Chapter 10: Trading Gaps Using Technical Analysis 133 Reversal Bars 134 Doji 134 When to Enter 136 Reversal Bars 141 The OOPS Entry 145 Gap and Goooooooooo!!! 147 Exit Strategies 152 Taking Profits 156 Know When to Fold ‘Em 159 Using Stops 161 Gaining an Edge 165 Chapter 11: News Rules! Trading News 171 Laggard News 171 Guidelines for Trading News 172 News Stories 174 Potential News 183 Managing Risk 185 Chapter 12: Trading Laggards 187 What Is a Laggard? 187 If It Looks Like a Laggard, and It Smells Like One… 188 Watchlists 188 Sectors 188 News and Laggards 192 Chapter 13: Trends Are Your Friends 193 Stick with the Trend! 194 Window Dressing 196 Earnings Runners 199 FOMC Runs 206 The January Effect 210 Chapter 14: Finding Your Own Animal Spirit 215 Next Steps 215 Choices 216 Laws of Attraction 216 Are You a Leopard? 218 Chapter 15: Zen and the Art of Rich 221 Society 221 Control… 222 Money 223 Cockroaches 224 Integrity 225 Zen 226 Chapter 16: What Animal Spirit Are You? 229 About the Author 231 Index 233

Read more less

Book SynopsisEd Ponsi''s straightforward guide to understanding technical analysis Technical Analysis and Chart Interpretations delivers simple explanations and easy-to-understand techniques that demystify the technical analysis process. In his usual straightforward style, bestselling author Ed Ponsi guides you through the twists and turns to show you what really matters when it comes to making money. Whether you trade stocks, currencies, or commodities, you''ll develop invaluable skills as you master difficult concepts and the tools of the trade. Technical analysis translates to any form of trading, and this book delivers clear, jargon-free guidance toward interpreting the various charts you''ll see in the field. Technical analysis can be confusing. Volatility, cycles, Elliot waves, Fibonacci, trendsit''s easy to get lost, and most of the available literature is incomprehensible to all but the experts. This book is differentit''s technical analysis for the rest of us. You''Table of ContentsIntroduction: The Journey xi About the Author xv PART I THE FOUNDATION OF TECHNICAL ANALYSIS 1 Chapter 1 Why Technical Analysis? 3 Chapter 2 The Language of Trading 9 Chapter 3 The Cornerstone 15 Chapter 4 The Dow Theory 19 PART II KEY CONCEPTS OF TECHNICAL ANALYSIS 27 Chapter 5 Common Types of Charts 29 Chapter 6 Support and Resistance 39 Chapter 7 Trends and Trend Lines 51 Chapter 8 Volume 61 Chapter 9 Gaps 77 PART III PRICE PATTERNS 93 Chapter 10 Reversal Chart Patterns 95 Chapter 11 Continuation Patterns 117 Chapter 12 Additional Chart Patterns 133 PART IV CANDLESTICK PATTERNS 141 Chapter 13 Candlestick Charting Patterns 143 Chapter 14 Continuation and Indecision Candlestick Patterns 169 PART V FIBONACCI 181 Chapter 15 Fibonacci Trading Techniques 183 PART VI TECHNICAL INDICATORS 199 Chapter 16 Moving Averages 201 Chapter 17 Moving Average Envelopes and Bollinger Bands 215 Chapter 18 Oscillators 223 Chapter 19 Average True Range (ATR) 243 Chapter 20 Complex Indicators 253 PART VII OSCILLATORS 259 Chapter 21 Point and Figure Charting 261 PART VIII ATR, ADX, AND PSAR 285 Chapter 22 Cycles and Tendencies 287 PART IX CYCLES 305 Chapter 23 Sentiment Indicators 307 PART X POINT AND FIGURE CHARTING 321 Chapter 24 Psychological Aspects of Technical Analysis 323 Chapter 25 Understanding Bubbles 333 Chapter 26 Trading versus Reality 339 PART XI ODDS AND ENDS 347 Chapter 27 Unconventional Patterns 349 Chapter 28 Combining Technical and Fundamental Analysis 353 PART XII BEHAVIORAL ASPECTS OF TECHNICAL ANALYSIS 359 Chapter 29 Final Thoughts on Technical Analysis 361 Index 363

Read more less

Book SynopsisSecure your financial future before the next big bubble bursts Aftershock provides a definitive look at the economic climate still ahead in 2015and beyondand details the steps you can take now to secure your financial future. Written by the authors who accurately predicted the financial crisis of 2008 and 2009, this book serves as both a warning and a game plan for investors looking to avoid catastrophic loss. This updated fourth edition has been expanded with new actionable insights about protection and profits in an increasingly confusing investment environment, and includes the latest data, updated charts and tables, and brand new coverage of monetary stimulus. With a look back at the domino fall of the conjoined real estate, stock, and private debt bubbles that triggered the last major crisis, this book paints a vivid picture of what to expect the next time the world''s economy pops. You''ll learn how to protect your assets before and during the coming fall, and hoTable of ContentsExecutive Summary xiii Acknowledgments xv Preface xvii Introduction: Your Guide to the Fourth Edition of Aftershock xxi Part I: The Coming Aftershock 1 Chapter 1: This Recovery Is 100 Percent Fake Why the Aftershock Has Not Been Canceled 3 Isn’t a Fake Recovery Better than No Recovery at All? 5 If the Aftershock Has Not Been Canceled, Why Hasn’t It Happened Yet? 7 Still Not Convinced This Recovery Is 100 Percent Fake? 17 Don’t Believe the Stimulus Has to Eventually End? 25 Please Prepare Now 30 Chapter 2: America’s Bubble Economy Understanding How We Accurately Predicted the Financial Crisis of 2008 Is Key to Understanding Why Our Latest Predictions Are Also Correct 33 Because Our Earlier Books Were Right, Now You Can Be Right, Too 38 Didn’t Other Bearish Analysts Get It Right, Too? 41 How the “Experts” Got It So Wrong 43 Predictions from Ben Bernanke and Henry Paulson—We Trust These Officials with Our Economy 48 Where We Have Been Wrong 49 Chapter 3: Phase 1: The Bubbles Begin to Burst Pop Go the Housing, Stock, Private Debt, and Spending Bubbles 55 Bubbles “R” Us: A Quick Review of America’s Bubble Economy 56 From Boom to Bust: The Virtuous Upward Spiral Becomes a Vicious Downward Spiral 62 Pop Goes the Real Estate Bubble 64 Pop Goes the Stock Market Bubble 70 Pop Goes the Private Debt Bubble 74 Pop Goes the Discretionary Spending Bubble 77 The Biggest, Baddest, Bad Loan of Them All 80 Chapter 4: The Market Cliff Not Your Father’s Down Cycle 83 The Market Cliff Won’t Be Just a “Down Cycle” 84 Hitting the Market Cliff 89 The Last Resort: A Stock Market Holiday 93 When Is the Best Time to Get Out of the Stock Market? 95 Chapter 5: Massive Money Printing Will Eventually Cause Dangerous Inflation—So Why Hasn’t It Happened Yet? 97 What Is Inflation? 98 What Exactly Is Money Printing? 99 How Does Money Printing Cause Inflation? 101 Central Banks Gone Wild: The World Is Printing Money 103 Where Is Inflation Hiding? 107 The Arguments against Future Inflation Simply Don’t Hold Up 113 This Is Not a Plan—It’s a Panic! 120 The Real Problem with Rising Future Inflation: High Interest Rates 121 The Fed’s Big Blind Spot: They Don’t Understand Where Growth Comes From (Hint: It Doesn’t Come from Rising Bubbles or Massive Money Printing to Support the Bubbles) 125 When Will Inflation Begin? When Group Psychology Turns Negative after the Market Cliff 129 The Inflation Deniers Are Liars! 133 Chapter 6: Phase 2: The Aftershock Pop Go the Dollar and Government Debt Bubbles 137 The Dollar Bubble: Hard to See without Bubble‐Vision Glasses 138 The Government Debt Bubble Pops 158 The Aftershock 165 The Six Psychological Stages of Denial 166 Is There Any Scenario for a Soft Landing? 170 Chapter 7: Global Mega-Money Meltdown It’s Not Just America’s Bubble Economy—It’s the World’s Bubble Economy 173 The United States Will Suffer the Least 174 Think of the World’s Bubble Economy in Two Categories: Manufacturing and Resource Extraction 175 How the Bursting Bubbles Will Impact the World 179 If the World’s Bubble Economy Is Hit Harder than the U.S. Bubble Economy, Won’t That Be Good for the Dollar? 188 If the Rest of the World Is Collapsing, Won’t That Be Good for Gold? 188 International Investment Recommendations 190 Chapter 8: “You’re No Fun” What I Hear Traveling Across Our United States 193 By Aftershock Co-author Robert Wiedemer Florida:”You’re No Fun” 193 Philadelphia: Wharton Meets Wall Street 197 Green Bay, Wisconsin: I Can Be a Cheerleader, Too—in the Right Places 199 North Carolina: People Know in Their Gut that What I’m Saying May Be Correct 201 New York City: The Turkeys Were Living the Good Life Until … 202 New York City Again: When You Abolish Failure, You Institutionalize Stupidity 203 One Last New York Story: Is He Really Smart or Really Stupid? 204 A State of Extreme Denial Exists in Parts of the United States 205 What’s the Smart Money Doing Now? Just What They Did Before the 2008 Financial Crisis! Same Denial Now as Before 207 The Sun Will Shine after Every Storm (From My Hotel Room in North Carolina) 209 Part II: Aftershock Dangers and Profits 213 Chapter 9: Covering Your Assets How Not to Lose Money 215 The Three Rules for Not Losing Money 215 These Rules Are Simple but Not Easy! 216 Long Term versus Short Term 218 Rule 1: Exit Stocks Well Before the Market Cliff 221 Rule 2: Stay Away from Real Estate until after All the Bubbles Pop 228 Rule 3: Avoid Bonds and Most Fixed‐Rate Investments as Interest Rates Rise 241 Where’s the Best Place to Stash Cash? 243 How Long Must We Follow These Three Rules? 243 Letting Go Is Hard to Do 244 What Else Can I Do to Protect Myself? 247 Remember, Your Net Worth Is Not Your Self‐Worth 249 Chapter 10: Cashing In on Chaos Best Aftershock Investments 251 Plenty of Profit Opportunities, but They Will Feel Quite Uncomfortable, Even Scary at Times 251 This Economy Is Evolving; Your Investments Should Evolve, Too 252 Three Goals of an Evolving Aftershock Investment Portfolio 254 Reducing Risk with a New Kind of Diversification 256 Two Other Aftershock Investments after the Bubbles Pop: Foreign Currencies and Foreign Bonds 272 Timing Is Everything before the Bubbles Pop, but Your Timing Won’t Be Perfect 274 Putting It All Together 275 Chapter 11: Aftershock Jobs and Businesses 279 The Rising Bubble Economy Created Huge Job Growth; Now the Falling Bubble Economy Means Fewer Jobs 280 Conventional Wisdom about Future Job Growth Is Based on Faith that the Future Will Be Like the Past 281 Why Conventional Wisdom on Jobs Is Wrong 283 What’s a Savvy Aftershock Job Seeker to Do? 284 The Falling Bubbles Will Have Varying Impacts on Three Broad Economic Sectors 286 Should I Go to College? 296 Opportunities after the Bubbles Pop: Cashing In on Distressed Assets 297 Dig Your Well before You Are Thirsty 298 Chapter 12: Understanding Our Problems Is the First Step toward Solving Our Problems 299 If You Don’t Understand Why an Economy Grows, You Can’t Understand Why It Doesn’t Grow 300 You Need to See the Big Picture before You Start to Focus 301 Key Breakthroughs in the History of Economic Thought 302 Economics Needs a Breakthrough Big‐Picture Idea like Geology Needed Continental Drift 309 So Why Aren’t We Getting an Alfred Wegener wor a Breakthrough Idea like Continental Drift? 311 Economists Have Become Academia’s Version of Financial Cheerleaders 311 The Demands to Get Tenure and the Rewards of the Good Life after Tenure Have Delivered a One‐Two Punch to Creative Economic Thought 312 Where to Now? Answer: Economics Needs to Move from Being a Collection of Competing Philosophies to Being a Unified Science 315 Four Key Elements for Making Economics More of a Science 317 Where Do We Stand Today in Making This Transition? 321 The Economics Profession Does Not Want to Make This Transition 322 The Solution to the Lack of Interest in Making Important Changes in Economics: The Coming Aftershock 324 Chapter 13: Our Predictions Have Mostly Been Accurate, So Why Do Some People Still Dislike Them? 327 It’s Not a Cheerleading Book 329 It’s Not a Complex Book (Although It Is Based on Complex Analysis) 330 It’s Not a Crazy Book 333 It’s Not an Academic Book 333 It’s Not Suggesting Armageddon 334 It’s Not a Reality‐Denying Book 335 Us versus the Comforters: How Aftershock Stacks Up against Other Bearish Books 335 Appendix: Are the Bond, Stock, and Gold Markets Manipulated? 343 Bond Market Manipulation 343 Stock Market Manipulation 344 Gold Market Manipulation 351 Market Manipulation Summary 354 Investment Impact 355 Bibliography 357 Epilogue: Say Good-Bye to the Age of Excess 363 Index 367

Read more less

Book SynopsisExamine the high yield market for a clear understanding of this evolving asset class High Yield Debt is the one-stop resource for wealth advisors seeking an in-depth understanding of this misunderstood asset class. The high yield market provides a diverse opportunity set, including fixed and floating rate debt, high and low quality debt issues and both short- and long-term duration; but many fail to understand that not all high yield exposure is the same, and that different market segments and strategies work best at different points in the economic cycle. This guide addresses the confusion surrounding high yield debt. You''ll find the information you need to decide whether or not to buy in to a high yield fund, and how to evaluate the opportunities and risks without getting lost in the jargon. The U.S. corporate high yield market is worth $2.4 trillionmore than the stock markets of most developed countries. Market growth has increased the number of funds with hTable of ContentsPreface ix Acknowledgments xv About the Author xvii Foreword xix Chapter 1 Development of the High Yield Industry 1 1.1 What is High Yield Debt? 1 1.2 The Importance of Credit Ratings 3 1.3 The Origins of High Yield 5 1.4 Advent of the Leveraged Buyout 7 1.5 Junk Bonds 9 1.6 Market Maturation and Growth 11 1.7 High Yield Today 13 1.8 Summary 14 Chapter 2 High Yield Issuers 17 2.1 High Yield Issuers 17 2.2 Capital Structure Considerations 21 2.3 Choosing Between High Yield Bonds and Leveraged Loans 22 2.4 High Yield Issuers by Industry 25 2.5 Purpose of High Yield Debt 25 2.6 The Role of Investment Banks 28 2.7 The High Yield Capital Raising Process 30 2.8 Summary 32 Chapter 3 Buying High Yield Debt 33 3.1 Who Can Buy High Yield Bonds? 33 3.2 Who Can Buy Leveraged Loans? 35 3.3 Buyers of High Yield Debt 35 3.4 Investment Mandates Impact Volatility 37 3.5 Collateralized Loan Obligations (CLOs) 38 3.6 Implications of an OTC Market 42 3.7 Tracking High Yield Liquidity 44 3.8 Total Return Swaps and Margin Finance 45 3.9 Summary 48 Chapter 4 High Yield Financial Concepts 49 4.1 Key Economic Terms of High Yield Debt 49 4.2 High Yield Call Protection 50 4.3 Fixed Versus Floating Rate Debt 52 4.4 Bond Yields, the Risk-Free Rate, and Credit Spreads 54 4.5 More Advanced Yield and Spread Concepts 56 4.6 Common Issuer Metrics Tracked 58 4.7 Summary 61 Chapter 5 Debt Structures 63 5.1 Ranking and Subordination 63 5.2 Operating and Holding Companies 66 5.3 Leveraged Loan Structures 68 5.4 High Yield Bond Structures 72 5.5 Payment-in-Kind Debt 75 5.6 Ahydo 75 5.7 Summary 76 Chapter 6 Credit Agreements and Legal Considerations 77 6.1 Loan Credit Agreements and Bond Indentures 77 6.2 Roadmap to High Yield Documentation 79 6.3 Affirmative and Negative Covenants 81 6.4 Incurrence-Based Versus Maintenance Covenants 83 6.5 Covenant-Lite – What Does It Mean? 85 6.6 More Advanced Credit Agreement Provisions 86 6.7 Sacred Rights and Bankruptcy Resolution 91 6.8 Recent Legislation 93 6.9 Summary 95 Chapter 7 High Yield Asset Class Performance 97 7.1 Total Returns, Volatility, and the Sharpe Ratio 97 7.2 Comparative Asset Class Performance 99 7.3 Annual Performance Variations 100 7.4 High Yield Bond and Leveraged Loan Price Volatility 101 7.5 Returns by Ratings 103 7.6 Beta and Correlation Analysis 104 7.7 Interest Rate Risk 106 7.8 Defaults and Recoveries 108 7.9 Summary 109 Chapter 8 Assessing the Market Opportunity 113 8.1 Sources of Market Information 113 8.2 How to Evaluate High Yield Credit Spreads 115 8.3 Putting Historical Credit Spreads into Context 118 8.4 Tracking Issuer Fundamentals 119 8.5 The Maturity Wall 122 8.6 Monitoring Excessive Risk-Taking 122 8.7 High Yield Supply and Demand 124 8.8 Summary 126 Chapter 9 1940 Act High Yield Investment Funds 127 9.1 The Investment Company Act of 1940 127 9.2 High Yield Mutual Funds 128 9.3 High Yield ETFs 132 9.4 High Yield Closed-End Funds 135 9.5 Comparison of Closed-End and Open-End Fund Returns 137 9.6 Business Development Companies 138 9.7 Summary 141 Chapter 10 Mezzanine Debt, Distressed Debt, and Credit Hedge Funds 143 10.1 Private Investment Funds 143 10.2 Mezzanine Debt Funds 145 10.3 Distressed Debt Funds 147 10.4 Credit Hedge Funds 148 10.5 Summary 150 Glossary 153 Index 169

Read more less

Book SynopsisA clear and practical guide to using binary options to speculate, hedge, and trade Trading Binary Options is a strategic primer on effectively navigating this fast-growing segment. With clear explanations and a practical perspective, this authoritative guide shows you how binaries work, the strategies that bring out their strengths, how to integrate them into your current strategies, and much more. This updated second edition includes new coverage of Cantor-Fitzgerald binaries, New York Stock Exchange binaries, and how to use binaries to hedge trading, along with expert insight on the markets in which binaries are available. Independent traders and investors will find useful guidance on speculating on price movements or hedging their stock portfolios using these simple, less complex options with potentially substantial impact. Binary options provide either a fixed payout or nothing at all. While it sounds simple enough, using them effectively requires a more

Read more less

Book SynopsisMake sense of international personal finance with expat-specific expert advice The Cross-Border Family Wealth Guide is the long-awaited financial handbook for cross border families, with expert insight from a financial advisor who specializes in expat issues. Whether you''re an American living abroad, or foreign-born and living in the U.S., this book demystifies the complex issues surrounding the worldwide tax system, international information reporting, sensible investments, international real estate, and retirement planning. When your wealth crosses international borders, managing even the most mundane financial affairs can become wrought with time-consuming complexity; moving money, opening accounts, dealing with currency risks and translation, and setting up investments suddenly involves a whole new set of rules and regulations. Your 401(k), IRA, or annuity must be handled properly to retain certain tax benefits, and retirement planning takes on a braTable of ContentsForeword by Tim Kochis, JD, MBA, CFP® xvii Preface xix Acknowledgments xxiii About the Author xxv Part I: Financial Challenges of a Cross-Border Life 1 Chapter 1 Who Are These Cross-Border Families? 3 The Growing Need for a Definitive Guide 4 Who’s Who: Who This Book Is Meant to Serve 6 Examples of Who Might Benefit from This Book 7 Diagramming a Cross-Border Person: Residency and U.S. Income Tax Status 8 How Many Cross-Border Professionals and Families Are There? 10 Unique Challenges Faced by Cross-Border Families Connected to the United States 11 Chapter 2 Unique Challenges and the Regulatory Landscape 12 The Unequal Nature of Tax Regimes and Reach 12 The Unique Worldwide Reach of the U.S. Tax System 13 Complexity in Taxation and Other Regulations 14 Scarcity of Professional Help and Information 15 A Changing Legal, Financial, and Regulatory Landscape 17 The Far Reach of the Foreign Account Tax Compliance Act (FATCA) 19 Recommending Against Secretive Offshore Wealth Strategies 20 Part II: Saving and Investing: Building Your Personal Net Worth 21 Chapter 3 Building a Strong Foundation 23 Retirement Destination Unknown: Invest Globally 23 Spreading It Around 24 Wealth Creation and Accumulation 25 Saving from Earnings 25 Real Estate Ownership 26 Stock-Based Compensation 27 Entrepreneurs and Businesses Ownership 27 Investment Gains and Reinvestment 28 Inheritance 28 Diversification: Protecting and Growing Wealth 28 Considering Your Entire Balance Sheet 29 The Meaning of “Diversification” versus “Asset Allocation” 30 Spreading Thing Around 30 Asset Allocation in Investment Portfolios 30 A Well-Allocated Portfolio Can Still Lack Diversification 32 Allocating Your Net Worth: A Balance Sheet Approach 32 Six Primary Asset Categories 33 Three Additional Items of Importance 33 Cash and Cash Equivalents 33 Personal Residences 34 Income Property 35 Publicly Traded Securities: Stocks and Bonds 36 Bonds and Bond Funds (Fixed Income) 36 Stocks and Stock Funds (Equities) 37 Downsides of Owning Stocks 38 Concentrated Business Ownership 39 Personal Debt 40 Collectibles and Other Hard Assets 41 Other Private Investment Vehicles 41 Conclusion 42 Chapter 4 Investing in the Markets: Stocks and Bonds 43 Three Important Attributes 43 Easy Diversification 43 No Active Involvement 43 Source of Growth and Risk Control 44 Stocks and Bonds Work Better Together 44 Setting a Risk Objective 45 Managing Emotions While Focusing on the Long Term 45 Stock Picking—Maybe Not 46 Investment Advice to Live By 47 Avoiding the Herd Mentality 48 Staying Calm in Times of Change 49 Determining Investment Goals and Objectives 49 Four Common Investor Objectives Defined 50 Fundamental Investment Guidelines 51 Low-Cost Passive Investing 52 Tax Efficiency Is Huge 53 Global Diversification for All 53 Risk Control Through Asset Allocation 54 Regular Rebalancing Adds Value: Don’t Invest and Forget 54 Strategic Versus Tactical Asset Allocation 55 Strategic Asset Allocation (SAA) 55 Tactical Asset Allocation (TAA) 55 Take It Slow 56 A Jurisdictional Review: Where to Hold Investments? 57 Large Foreign Banks in Europe or Asia 58 Have You Earned Your Own Private Banker? 58 Not World-Class Investments 58 Not World-Class Advice 59 Tax Reporting and FATCA 59 Large Offshore Private Banks 60 Smaller Offshore Banks and Insurance Companies 61 U.S. Brokerage Accounts 62 Problems with Maintaining Accounts in the United States 63 Foreign Residents with U.S. Accounts 64 The Best Choice for Many People 65 Part III: 401(k)s, IRAs, and Other Pensions and Savings Plans 67 Chapter 5 A Global Approach to 401(k)s and IRAs 69 Investing Your Serious Money 69 401(k) Plan Basics 70 Key Benefits of 401(k) Plans 70 Global Investing for a Global Retirement 72 The Location of Underlying Assets Is What Matters 72 401(k) Plans Lack a Global Perspective 74 Inherent Currency Risks 74 Target Date Funds: A Lot to Like and Dislike 76 IRA Rollovers 76 IRAs Offer Distinct Advantages 77 Owning Real Estate Within an IRA 78 Leave It Alone and Let It Grow 78 Chapter 6 Unique Cross-Border 401(k) Issues 80 A Lack of International Tax Agreement 81 Do the Benefits of a 401(k) Follow You? 82 International Tax Law Is Unclear 82 The 401(k) Gets Respect 82 Benefits May Travel with You, but Your Account Stays Put 83 Taking It with You 84 Must I File a U.S. Tax Return Because of a 401(k)? 84 How Are Distributions Taxed? 85 What If You Are Living Abroad When You Draw Out Money? 85 Tax Withholdings on Distributions to Nonresidents 87 Many U.S. Institutions Will Overwithhold Tax on Distributions 87 How Are Foreign Residents Recovering U.S. Withholding Tax? 87 Unreported Income Isn’t Right 88 Contributions to IRA Accounts While Living Abroad—Be Careful 89 Chapter 7 Foreign Retirement Plans, Pensions, and Other Savings Accounts 91 Foreign Retirement Plans 91 U.S. Tax Treatment of Foreign Retirement Plans Is Often Unclear 92 What Is Really Happening Now? 92 Contributions by U.S. Citizens and Residents to Foreign Plans 93 For U.S. Taxpayers: Foreign Contributions Typically Do Lower Taxes 93 It Is Likely Not Being Reported to the IRS at All 94 Best Planning of All—Save Now and Save Later 94 Existing Foreign Retirement Accounts: The Real World 95 Better International Reporting and Coordination Is Needed 96 Investing Inside a Foreign Retirement Account 96 High Fees and Poor Investments: A Headwind Against Growth 96 Roth IRAs and Roth 401(k)s 97 How to Get Money In 98 Foreign Implications of Roth IRAs and Roth 401(k)s 99 Roth Accounts Don’t Speak Foreign Languages 99 Traditional Pension Income 100 Pensions Paid Across Borders 100 U.S. Taxpayers Abroad with U.S. Pension Income 101 Not Reporting to Foreign Authorities Is Risky 101 U.S. Taxpayers Abroad with Foreign Pension Income 102 Nonresidents Living Abroad with U.S. Pension Income 102 Don’t Claim to Be a U.S. Tax Resident When You Are Not 103 Proper Tax Treatment 103 Educational Savings: 529 Plans 104 To Maximize Benefit, Start Very Young 105 Foreign Residents Beware 105 Finding Good Advice Is a Challenge 106 Part IV: Real Estate 107 Chapter 8 Renting, Owning, and Investing 109 Crazy for Real Estate 109 Real Estate Appreciation Likely to Slow in Future 109 Primary Residences and Vacation Homes 110 Advantages to Owning Your Home 110 Owning a Vacation Home 111 The Process of Buying a Home in the United States 112 Selling Expenses and Property Taxes 113 Buy or Rent upon Arrival? 113 When You Should Probably Own 115 Real Estate as an Investment 115 Before Even Considering an Investment 115 Benefits (and Some Negatives) to Investing in Real Estate 116 Property Types: Single-Family Homes Versus Commercial 117 Types of Commercial Real Estate Assets 117 Owning Property: Directly or with Other Investors 119 Real Estate Partnerships 119 To Rent Out or Sell a Former Home 120 Why Turn Your Old Home into a Rental Property? 120 Do You Like Fixing Toilets? 121 You Have Three Years to Decide 121 Cross-Border Situations Where a Home Is Left Behind 122 Americans on the Move 122 Foreign Nationals with U.S. Residency 122 Foreigners Might Sell Before Becoming a U.S. Tax Resident 123 Selling Before Entering the United States, When Gains Are Very Large 124 Sale and Lease Back 124 Chapter 9 Real Estate Taxation and Other Considerations 125 Basic Tax Treatment of Real Estate 125 Taxation of Primary Residences 125 Tax-Free Gain on Sale of a Primary Residence 126 The Treatment of Vacation Homes 127 Taxation of Rentals and Other Investment Property 127 Reducing Income Tax—A Shelter from the Tax Man 128 Selling Investment Property—Calculating Taxable Gains 129 Tax Basis and Accumulated Depreciation—Shifting Income Down 129 Foreign Properties Often Not Reported to the IRS 130 Go Ahead, It Won’t Hurt Too Much 131 It’s Not Really “Forever”—But It Might Be 131 Global Transparency Is Coming 132 Foreign Property Gifted by Family Members 132 Owning Property Inside of an IRA 133 Rules to Be Carefully Followed 133 Be Careful to Read the Fine Print 134 Other Cross-Border Considerations 135 Tax-Free Exchange of Investment Property—Doesn’t Travel Well 135 Sorry, This Only Works for U.S. Properties 136 Avoid Owning Foreign Real Estate Through a Foreign Corporation 136 Unique Currency Risk When Owning Property Abroad 137 Strange Gains and Losses on the Retirement of Debt on Personal Residence 137 Nonresident Aliens: Investing in the United States and the EB-5 Program 139 Nonresident Aliens Investing in U.S. Real Estate 139 Becoming a U.S. Resident—EB-5 Visas 140 Estate Taxes on U.S. Property Owned by Nonresidents 140 Risk of Estate Taxes with Foreign Property 140 Part V: Cross-Border Taxation 143 Chapter 10 Understanding the Three Types of Cross-Border Families 145 The Unique Complexities of Cross-Border Taxation 145 Tax Profiles: Three Types of Cross-Border Families 147 Type 1: Foreign Nationals in the United States 147 Learning the U.S. Tax System 148 Type 2: American Citizens and Permanent Residents Living Abroad 148 Foreign Citizens Leaving the United States for Short-Term Assignments 149 Expatriate Assignments and Tax-Equalized Employment Packages 150 “Localized” Employment Contracts in Another Country 151 Reducing U.S. Tax for Taxpayers Living Abroad 152 Foreign Earned Income Exclusion 152 Foreign Housing Exclusion 152 Foreign Tax Credits 153 Revoking the Foreign Earned Income Exclusion 153 Likely U.S. Tax Liabilities for U.S. Taxpayers Abroad 154 Type 3: Foreign Nationals with Assets in the United States 155 Taxation by the IRS—On Passive U.S. Investments 156 Interest Income, Dividends, and Capital Gains 157 Rental Real Estate Property In the United States 157 Overwithholding Tax on Bond Interest Inside a Fund 158 Estate Tax Exemptions for Nonresidents 159 Becoming a U.S. Resident for Tax Purposes 159 Two Tests to Determine U.S. Residency 160 Lawful Permanent Resident Test (the Green Card Test) 160 Substantial Presence Test 161 Situations When Taxed Only on U.S.-Sourced Income 162 Tax Treaty Basics 163 Chapter 11 U.S. Tax Overview: Federal and State 165 Taxing Worldwide Income: The IRS Is Different 165 Filing Deadlines 166 Income Tax Overview 166 Gross Income 167 Deductions from Gross Income 168 Itemized or Standard Deductions from AGI 168 Personal Exemptions 169 Final Taxable Income 169 Understanding Marginal Tax Rates 169 Lower Tax Rates on Capital Gains and Dividends 170 Real Estate Rental Income 171 Stock-Based Compensation: Options 173 Stock-Based Compensation: Stock Grants and RSUs 173 Exchange Rate Issues When Taxing Foreign Income 174 State Income Taxes 176 State Tax Returns Often Based on Federal Returns 176 Different Treatments of Long-Term Capital Gains and Qualified Dividends 176 State Tax Residency: Requirements and Termination 177 When States Come Looking for You 178 U.S. Tax Residents Living Abroad with State Tax Liabilities 179 Avoiding Unnecessarily Becoming a State Resident in the First Place 179 Chapter 12 Additional Tax-Planning Considerations 181 Investing Outside of the United States—Avoiding PFIC Rules 181 Passive Foreign Investment Corporations (PFICs) Explained 181 Complex Reporting and Punitive Tax Treatment 182 Advice on Foreign Accounts and PFIC 184 Three PFIC Scenarios to Consider 185 Foreign Asset Reporting and Tax Evasion 186 Foreign Bank Account Reporting (FBAR) Requirements 187 FBAR Penalties 188 Other Foreign Asset Reporting: Form 8938 188 Additional Foreign Asset Reporting 191 Voluntary Offshore Disclosure Programs (OVPD) 191 Other Forms of Taxation in the United States 192 Social Security Taxes 192 Social Security Tax Calculation 192 Totalization Agreements 192 Special Taxes on High-Earners 193 Additional Medicare Taxes on Ordinary Income 193 Net Investment Income Tax (NIIT) 194 Gift and Estate Taxes 194 Gift Taxes 195 Estate Taxes 196 Estate Taxes for Nonresidents 197 Expatriation Tax (Exit Tax) 197 Prearrival Planning 198 Accelerate Gift Planning 199 Accelerate Income When Possible 199 Distribute Deferred Income When Possible 199 Consider Realizing Gains Before Moving Here 200 Review Existing Asset Structures Before Arriving 201 Review Immigration and Visa Alternatives 201 Part VI: Retirement Planning 203 Chapter 13 Planning for a Global Retirement 205 Where to Retire? A Common Dilemma 205 Being Near Family Is Most Important 206 Plan to Retire Anywhere, to Maximize Flexibility 206 Worldwide Planning Is Also Inherently More Complex 207 Investing for Retirement 207 Having Enough Money to Retire 208 How Much Money Will You Need? 208 First Question: What Will You Need to Live On? 208 Second Question: What Are Your Sources of Ongoing Retirement Income? 209 Third Question: Will Your Retirement Savings Make Up the Difference? 209 Safe Withdrawal Rates: The 4 Percent Rule 210 What Is a Successful Retirement? 211 The Important Role of Financial Planning 211 Longevity Risk Is Alive and Well 212 Inheritance: Plan for It, But Don’t Count on It 212 Organizing and Optimizing Worldwide Income and Assets 213 Assessing Sources of Income in Retirement 213 Organizing Your Assets 214 Cash and Cash Equivalents 215 Qualified Accounts: 401(k)s, IRAs, and Other U.S. and Foreign Retirement Accounts 215 Nonqualified Investment Accounts—Generally Holding Stocks and Bonds 216 Concentrated Stock and Stock Options 217 Real Estate 217 Alternative Investments 217 Currency Exposure: A Real Retirement Risk 218 Chapter 14 Considerations for Cross-Border Retirees 219 Tax Planning for Retirement 219 Taxes on Pension and Social Security Income 219 Taxes on Investment Income and Gains 219 Taxes on Distributions from Qualified Accounts 220 Taking Retirement Accounts with You 221 Cash Management and Account Administration 221 FATCA Fallout: Harder to Deal with Big International Banks 222 Accessing Your Money 222 Foreign Exchange Costs—Minimize Translations 223 Efficient Cross-Border Money Transfers 223 Social Security and Foreign Government Pensions 224 Social Security Benefits Earned Are Usually Yours for Life 225 Possible “Windfall Elimination” Reduction to Benefits 226 Long-Term Viability and Ongoing Changes 226 Filing for Benefits Early, on Time, or Late? 227 Foreign Government Pensions 228 Drawing on Tax-Deferred Accounts 228 The Ordering of Withdrawals 229 Conclusion 230 An Overview of Key Points 230 Final Thoughts and Words of Encouragement 234 Index 235

Read more less

Book SynopsisTechnical analysis for today''s market, with smarter setups for less risk Candlestick and Pivot Point Trading Triggers +Website makes Pivot Point analysis relevant for today''s market, with up-to-date data and new techniques that reflect the current trading environment. Tried-and-true tactics are modernized with new tools and approaches, and novel methodologies are introduced to help you make smarter trades while minimizing risk. Directional options strategies draw on analysis from Thinkorswim, TradeStation and Genesis Software, and are integrated with PPS Indicator and Persons Pivots. Quarterly pivots are introduced for long-term trading opportunities and option strategists, and leveraged and inverse-leveraged ETFs are brought into the detailed discussion on trading vehicles. The author''s own proprietary setups have been updated to align with the new trading realities, and the new chapter on volume analysis covers the techniques used in his book Mastering the StocTable of ContentsAcknowledgments xi About the Author xiii Introduction 1 Things Change 1 The Conundrum 2 History Should Repeat Itself 2 Delayed Reaction 3 Trading for a Living 3 The New Age Technician 4 Chapter 1 Trading Vehicles, Stock, ETFs, Futures, and Forex 5 Importance of a Rule-Based Approach 7 Start Trading as a Business 8 Education is the Key to Success 9 Traders Need to Ask More Questions 11 Risk Per Trade 14 Number One Trading Focus—Risk Management 14 Diversification is the Key to Success 15 Habitual Winners Follow Trading Plans 15 Investment Vehicles 19 FX—Forex 19 Stock Trading Opportunities 20 Spread Trading Tips 23 Become the Next Warren Buffett 27 Long-Term Investing or Short-Term Trading 28 Exchange-Traded Funds 28 Personalized Mini-Mutual Fund 29 Hot Sectors, Hot Stocks 30 Currency ETFs 31 Commodity ETFs 31 The Hot Stock 32 Futures Markets: Leverage System 35 Futures Contracts 36 Tandem Trading Techniques 39 Stocks Influenced by Commodities 42 Forex, the Currency Cash Machine 42 Margin and Leverage 43 Long and Short 44 Benefits of Futures and Forex 44 Insider Trading Information 49 Summary 53 Study the “Macro” Issues 53 Chapter 2 Determining Market Condition 57 Bullish, Bearish, or Neutral 57 What Defines Momentum? 59 What Makes a Successful Trader? 59 Where’s the Catch? 61 Find the Clues! 62 Be on Guard for Changes 65 Forex Markets Fall Prey to Reversals 67 Moving Averages Help! 68 Filling in the Gap 70 Chapter 3 How to Read Oscillators to Spot Overbought or Oversold Conditions 75 Stochastics 76 Rules to Trade By 77 Stochastics Confirms the Turn 81 Tips and Tricks to Help 82 Stochastics Patterns 82 Rules to Trade By 84 MACD 86 Summary 93 Chapter 4 Momentum Changes: How to Spot a Trend’s Strength or Weakness 95 Volume as a Trend Indicator 96 Overbought Market Condition—A Dead Giveaway 102 Blow-Off Tops on Volume Spikes 103 Volatility ETN ($XVV) versus SPY or E-mini S&P Futures 105 Actionable Trade Concepts 106 Chapter 5 Pivot Points: Determine Key Price Support and Resistance Areas and the Importance of Confluence 111 Support and Resistance in Disguise 112 Mathematical Calculations 114 The Leading Indicator 114 Possible Outcomes When Prices are Near Pivot Area 118 Determine the Range 121 Multiple Time Frame Analysis 121 Filter Out Information Overload 124 Predicting Highs and Lows Using the Calculations 124 Filtering the Numbers 124 Lining Up the Numbers 126 Pivots Combined with Candles 128 The Importance of Confluence 137 Time and Price 137 Volatility is Good—To a Degree 139 Confluences Work at Tops 141 Option Covered Call Strategy 147 Summary 152 Chapter 6 Pivot Point Moving Average System 153 Determining Trend Direction 154 Beat the Street 154 The Simple Moving Average 154 Trading Trigger Strategy 165 Conditional Optimized Moving Average System 166 PPS Indicator 167 Trading Tips 169 How Do I Start? 175 Chapter 7 Candle Charts and Top Reversal Patterns 183 Candlestick Charting 183 Candle Formations 186 The Doji 187 Other Important Candle Patterns 189 Candlestick Trading Strategies 202 Chapter 8 Set-ups and Triggers: Combining Candles and Pivots 213 High Close Doji 216 Characteristics 217 Triggers on Futures Markets 227 Low Close Doji 231 Characteristics 232 Trading Rules 232 Triggers on Futures Markets 239 Triggers on Stocks 241 The Best Predictive Indicator 242 Summary 244 Chapter 9 Risk and Trade Management: Setting Stops and Profit Targets 247 Placing Stop Orders 249 General Uses of Stop Orders 249 Rising SAR calculation 257 Falling SAR Calculation 257 The Bottom Line 263 Chapter 10 Projecting Entry and Exit Points: Learn to Scale Out 265 Steps to Success 268 Last Conditional Change 270 Do Something Great 273 Scale and Trail 274 Integrate Pivot Points to Help Time Your Entries and Exits 275 Buy Support, Sell Resistance 277 Chapter 11 The Sample Analysis: The Proof is in the Back-Testing 281 Seasonal Stock System 285 History Lessons 286 Which Strategy to Select? 288 What About the MACD? 289 What is the Best Day Trading Confirmation Trigger to Program? 296 Show Me the Proof 298 Money Management is the Key to Success 304 What and When is the Best Time to Trade? 305 Chapter 12 Confidence to Pull the Trigger Comes from Within 313 Wait for the Trade Signals 316 The Right Frame of Mind 320 Track and Chart Your Trades 320 Changes Since the 1st Edition 322 Change Your Brain 323 Simulated Trading 324 Live by the Rules 326 Index 327

Read more less

Book SynopsisA practical, step-by-step guide to value investing in Asian stocks Value Investing in Asia offers a uniquely targeted guide to investors seeking new opportunities in Asian markets.Table of ContentsDisclaimer vii Foreword xiii Preface xv Acknowledgments xix About the Authors xxi Chapter 1 Value Investing in Asia 1 Finding Value The Investor and the Market Why Value Investing Works Three Types of Value to Be Found Chapter 2 Key Developments in Asia 11 What Is in Asia? What Has Happened in Asia? Chapter 3 Uniquely Asia 31 What Asia Has Going for It Corporate Governance in Asia Shareholder Structure Succession Disclosure and Transparency “Smart” Money Gets Hit Too Government – The Elephant in the Room Don’t Bet Your House on Legal Prosecution Activism and Shorting Chapter 4 The Future of Investing in Asia 75 ASEAN, Pushing Ahead The Wall Street of Asia From ‘‘Guanxi’’ to Transparency The Future of Healthcare The Asian Consumer Story Lives On Chapter 5 Using the Right Process 89 Asset Value Current Earning Power Value Growth Value Special Situations Narrow Your Search – Screening Screen Your Screens The 5-Fingers Rule The Importance of the 5-Fingers Rule Chapter 6 Research Like a Businessman 115 Getting the Right Data Annual Reports Are Your Best Friend Making Sense of an Annual Report Don’t Stop at One Why Should I Read a Competitor’s Annual Report? Who Do I Speak To? It is More Than Just the Numbers Chapter 7 Finding Red Flags 141 What are Red Flags? Auditor’s Opinion Financial Red Flags Non-Financial Red Flags Chapter 8 Three Simple Valuation Techniques to Live By 161 Price-to-Book Ratio Price-to-Earnings Ratio Discounted Cash Flow Always Remember Your Margin of Safety Chapter 9 How Everything Comes Together 185 Value Through Assets – Hongkong Land Holdings Limited Current Earning Power – Tingyi (Cayman Islands) Holdings Corporation Growth in Cyclicality – First Resources Limited Special Situation – Dalian Wanda Commercial Properties Co., Limited High Growth – Tencent Holdings Limited Conclusion 221 Interviews 225 An Interview with Wong Kok Hoi of APS Asset Management An Interview with Tan Chong Koay of Pheim Asset Management An Interview with Wong Seak Eng, Kevin Tok and Eric Kong of Aggregate Asset Management An Interview with Yeo Seng Chong of Yeoman Capital Management An Interview with David Kuo of Motley Fool Singapore Index 265

Read more less

Book SynopsisGet to know the why' and how' of machine learning and big data in quantitative investment Big Data and Machine Learning in Quantitative Investment is not just about demonstrating the maths or the coding. Instead, it's a book by practitioners for practitioners, covering the questions of why and how of applying machine learning and big data to quantitative finance. The book is split into 13 chapters, each of which is written by a different author on a specific case. The chapters are ordered according to the level of complexity; beginning with the big picture and taxonomy, moving onto practical applications of machine learning and finally finishing with innovative approaches using deep learning. Gain a solid reason to use machine learning Frame your question using financial markets laws Know your data Understand how machine learning is becoming ever more sophisticated Machine learning and big data are not a magical solution, but appropriately applied, they are extremely effectivTable of ContentsCHAPTER 1 Do Algorithms Dream About Artificial Alphas? 1By Michael Kollo CHAPTER 2 Taming Big Data 13By Rado Lipuš and Daryl Smith CHAPTER 3 State of Machine Learning Applications in Investment Management 33By Ekaterina Sirotyuk CHAPTER 4 Implementing Alternative Data in an Investment Process 51By Vinesh Jha CHAPTER 5 Using Alternative and Big Data to Trade Macro Assets 75By Saeed Amen and Iain Clark CHAPTER 6 Big Is Beautiful: How Email Receipt Data Can Help Predict Company Sales 95By Giuliano De Rossi, Jakub Kolodziej and Gurvinder Brar CHAPTER 7 Ensemble Learning Applied to Quant Equity: Gradient Boosting in a Multifactor Framework 129By Tony Guida and Guillaume Coqueret CHAPTER 8 A Social Media Analysis of Corporate Culture 149By Andy Moniz CHAPTER 9 Machine Learning and Event Detection for Trading Energy Futures 169By Peter Hafez and Francesco Lautizi CHAPTER 10 Natural Language Processing of Financial News 185By M. Berkan Sesen, Yazann Romahi and Victor Li CHAPTER 11 Support Vector Machine-Based Global Tactical Asset Allocation 211By Joel Guglietta CHAPTER 12 Reinforcement Learning in Finance 225By Gordon Ritter CHAPTER 13 Deep Learning in Finance: Prediction of Stock Returns with Long Short-Term Memory Networks 251By Miquel N. Alonso, Gilberto Batres-Estrada and Aymeric Moulin Biography 279

Read more less

Book SynopsisTable of ContentsForeword ix Acknowledgments xiii Part One The Beginning 1 One The House on Dover Road, 1898–1919 3 Two Lessons Learned, 1919–1925 19 Three Mackubin, Goodrich & Co., 1925–1927 29 Four The Great Bull Market and the Crash, 1927–1929 43 Five After the Crash, 1930–1937 53 Part Two His Own Boss 65 Six Birth of T. Rowe Price and Associates, 1937 67 Seven “Change: The Investor’s Only Certainty” 79 Eight The Firm’s Adolescence and World War II, 1938–1942 87 Nine The Growth Stock Philosophy 97 Ten Postwar Era, 1945–1950 109 Part Three The Sage of Baltimore 121 Eleven New Opportunities: Mutual Funds, Pension Plans, and the Launch of the Growth Stock Fund, 1950–1960 123 Twelve Transitions, 1960–1968 139 Thirteen The United States Enters a New Era, 1965–1971 151 Fourteen Dark New Era, 1971–1982 163 Fifteen The Grin Disappears, 1972–1983 175 Part Four Market Analyses 195 Sixteen Investing for the Decade, 2017–2027 197 Seventeen Weak Performance of the Growth Stock Fund, 1970s 207 Epilogue: The T. Rowe Price Today 213 Sources 233 Index 241

Read more less

Book SynopsisThe definitive book on Positioning Analysis a powerful and sophisticated framework to help traders, investors and risk managers better understand commodity markets Positioning Analysis is a powerful framework to better understand commodity price dynamics, risk, and sentiment. It indicates what each category of trader is doingwhat they are trading, how much they are trading and how they might behave under a variety of different circumstances. It is essential in isolating specific types of flow patterns, defining behavioral responses, measuring shifts in sentiment, and developing tools for better risk management. Advanced Positioning, Flow and Sentiment Analysis in Commodity Markets explains the fundamentals of Positioning Analysis and presents new concepts in Commodity Positioning Analytics. This invaluable guide helps readers recognize how certain types of positioning patterns can be used to develop models, indicators, and analyses that can be used to enhance performance. This updated second edition contains substantial new material, including analytics based on the analysis of flow, the decomposition of trading flows, trading activity in the Chinese commodity markets, and the inclusion of Newsflow into Positioning Analysis. Author: Mark J S Keenan, also covers the structure of positioning data, performance attribution of speculators, sentiment analysis and the identification of price risks and behavioral patterns that can be used to generate trading signals.. This must-have resource: Offers intuitive and accessible guidance to commodity market participants and risk managers at various levels and diverse areas of the marketProvides a wide range of analytics that can be used directly or integrated into a variety of different commodity-related trading, investment, and risk management programsFeatures an online platform comprising a wide range of customizable, regularly-updated analytical toolsContains an abundance of exceptional graphics, charts, and illustrationsIncludes easy-to-follow instructions for building analytics. Advanced Positioning, Flow and Sentiment Analysis in Commodity Markets: Bridging Fundamental and Technical Analysis, 2nd Edition is an indispensable source of information for all types of commodity traders, investors, and speculators, as well as investors in other asset classes who look to the commodity markets for price information.Table of ContentsAbout the Author xi Acknowledgements xiii Preface xv About the Companion Website xvii Introduction 1 Chapter 1 Advanced Positioning, Flow, and Sentiment Analysis in Commodity Markets 7 1.1 Positioning Analysis – What is It? 8 1.2 The History of Positioning Data, the COT Report, and the Agencies that Provide the Data 10 1.3 Misunderstandings and Issues in Positioning Analysis 10 1.4 Futures and Options Data 17 Chapter 2 The Structure of the Positioning Data 19 2.1 The Structure of Positioning Data 20 2.2 Positioning Data for the London Metal Exchange (LME) – The MiFID Classifications 28 2.3 Other Types of Positioning and Flow Data 33 2.4 The Structure of Commodity Markets 34 Chapter 3 Performance Attribution – An Insight into Sentiment and Behavioural Analysis? 45 3.1 The Proliferation of Speculative Positioning Data 46 3.2 Why is Positioning Data Interesting 47 3.3 Measuring the Skill or Performance of MMs 48 3.4 Net Futures Positioning vs Net Trader Number Positioning or Alignment 55 Chapter 4 Concentration, Clustering, and Position Size – Price Risks and Behavioural Patterns 59 4.1 Concentration, Clustering, and Position Size 60 4.2 Concentration, Clustering, Position Size, and Their Relationship to Price Over Time 62 Chapter 5 ‘Dry Powder (DP)’ Analysis – An Alternative Way to Visualise Positioning 71 5.1 Dry Powder (DP) Analysis 72 5.2 DP Indicator Variations 75 5.3 DP Indicators and Trading Signals 82 Chapter 6 Advanced DP Analysis – Deeper Insights and More Variables 87 6.1 Advanced DP Indicator Charts 88 6.2 DP Indicators, Price, and Curve Structure 96 6.3 DP Hedging Indicators 99 6.4 DP Factor, Fundamental, and Currency Indicators 101 Chapter 7 Decomposing Trading Flow and Quantifying Position Dynamics 111 7.1 Decomposing Net Positioning – The Methodology 112 7.2 Decomposing Long and Short Positioning – The Methodology 115 7.3 Who Has Been Driving Prices? 116 7.4 Who is Trading with Whom? 118 7.5 The Impact on Prices 122 7.6 Speed of Positioning Changes 124 Chapter 8 Overbought/Oversold (OBOS) Analysis – The Intersection of Extremes 127 8.1 The Overbought/Oversold (OBOS) Philosophy 128 8.2 Constructing the Framework 128 8.3 The OBOS Concentration Indicator 132 8.4 Key Attributes of the OBOS Approach 133 8.5 Behavioural Patterns within the Boxes 134 8.6 OBOS Variations 138 8.7 The DP/OBOS Hybrid Indicator 141 Chapter 9 Advanced OBOS Analysis – Extremes in Sentiment and Risk 147 9.1 The OBOS Framework – Clustering and Position Sizes 147 9.2 OBOS Factor Indicators 155 9.3 Commodity Risk Premia – Positioning Analysis and Risk Management 159 Chapter 10 Sentiment Analysis – Sentiment Indices and Positioning Mismatches 163 10.1 The Difference between Trader Numbers and Open Interest 164 10.2 Trader Sentiment (TS) Indices 166 10.3 Mismatches in Positioning and Price Inflexion Points 172 Chapter 11 Newsflow in Positioning Analysis 177 11.1 Newsflow Data in Commodity Markets 178 11.2 Building Basic Newsflow Indices 181 11.3 Combining Newsflow with Positioning 186 11.4 Economic Policy Uncertainty 190 Chapter 12 Flow Analysis – The ‘Flow Cube’ and the ‘Build Ratio’ in Commodity Markets 191 12.1 The Flow Cube 192 12.2 The Flow Cube down the Forward Curve 198 12.3 The LBMA-i Trade Data 202 Chapter 13 Chinese Commodity Markets – Analysing Flow 203 13.1 The Chinese Commodity Exchanges 203 13.2 The Size of the Chinese Commodity Exchanges 205 13.3 Speculative vs Hedging Activity in Chinese Commodities 208 13.4 The Flow Cube and Build Ratio in Chinese Commodities 210 13.5 The OBOS Framework and the Speculation Ratio 212 Chapter 14 Machine Learning – A Machine’s Perspective on Positioning 215 14.1 Introduction to Machine Learning (ML) 216 14.2 Decision Trees 217 14.3 Feature Importance 227 14.4 Random Forests 229 14.5 Using ML to Trade 232 Appendix 1 History of the COT Report 235 Appendix 2 The COT Reports 237 Index 249

Read more less

Book SynopsisWant to cash in on real estate investing? A millionaire tells you how. Tips, Tricks, Foreclosures, & Flips of a Millionaire Real Estate Investorfeatures ideas and techniques from millionaire real estate investor, Aaron Adams. Inside, he details the strategies he's repeatedly used to make moneyand shows you how to do the same. Incorporating advice from Adams's mentors and experienced investors who taught him the pros and cons of investing, he details how he learned to pick an individualized strategy based on where he was living. . . so that you can do the same. Harness the techniques that have made Aaron Adams millions Discover insiders' tips on real estate investment Implement proven strategies with cash rewards Get started right away with confidence For those with real estate investing experience, this book offers new ways to use old ideas in the contemporary marketbacked by Adams's experience purchasing hundreds of properties over the years.Table of ContentsFrom Employee to Investor xi 1 Using Public Records to Find Home Run Deals 1 2 Using Hand-Delivered Letters to Get Deals 5 3 Using Yard Signs to Find Motivated Sellers 9 4 Finding Where All the Real Investors Hang Out (It’s Not at Real Estate Investing Clubs!) 13 5 Using Property Management Companies to Find Deals 17 6 Creatively Selling Properties to Other Investors 21 7 Finding Motivated Buyers 25 8 Selling to Tenants: Working Backward to Find a Buyer 29 9 Selling to the Tenants: Be the Bank 33 10 How to Get Money to Invest When You are Broke 35 11 Buying Properties in the U.S. at Foreclosure Auctions 39 12 Flipping Properties to Homeowners 45 13 Active vs. Passive, High Value vs. Low Value 51 14 Understanding the Four Cs of Real Estate Investing 59 15 Four Factors That Make a Great Market 67 16 The Five Fs 75 17 PPP 83 18 Key Points for the International Investor 91 19 Five Glass Ceilings 97 20 Glass Ceiling #1: Finding and Supplying a Product to Sell 103 21 Glass Ceiling #2: Selling a Product 109 22 Glass Ceiling #3: Building a Team of Employees and Partners 117 23 Glass Ceiling #4: Raising Capital to Fund and Grow Your Business 129 24 Glass Ceiling #5: Developing Systems to Accelerate Growth 143 25 Finding, Flipping, and Financing Mobile Homes for Quick Cash 159 Acknowledgments 173 About the Author 175 Index 177

Read more less

Book SynopsisEstablishing an effective partnership and achieving improved outcomes for investors and management teams during the hold cycle Private equity represents a productive and fast-growing asset classbuilding businesses, creating jobs, and providing unlimited opportunity for investors and management teams alike, particularly if they know how to work together in candid and effective partnerships. Restructuring the Hold demonstrates how investors and managers can best work together to optimize company performance and the associated rewards and opportunities for everyone, not just the investors. Through brief references to the parable of the Gramm Company, a middle market portfolio company, readers will follow the disappointments and triumphs of a management team experiencing their first hold period under private equity ownership, from the day they get purchased through the day they get sold. Restructuring the Hold provides the reader both general kTable of ContentsList of Figures xi Foreword xv Preface xxi About the Authors xxv Acknowledgments xxix Introduction 1 Core Audience 4 Organization of the Book 6 Chapter 1: Private Equity 9 The Asset Class 11 The Middle-Market 17 The Investment Cycle 22 The Motivation 24 Chapter 2: New Ownership 31 The Ideal Partnership 33 Anticipating Management Sentiment 36 Key Investment Period Roles 42 Operating Partner Involvement 49 Core Values 55 Chapter 3: Month 1: Consternation 59 Onboarding Together 62 Confirming Portco Leadership 69 Teaming Authentically 77 Overcoming Resistance 81 Chapter 4: Month 2: This Might Be Okay 87 Baselining the Investment Period 90 Reporting Monthly Financials 94 Starting with Momentum 97 Identifying Value Sources 101 Chapter 5: Month 3: Guarded Enthusiasm 113 Generating and Aggregating Ideas 116 Evaluating and Prioritizing Opportunities 122 Profiling and Planning Initiatives 127 Suspending Strategic Planning Formalities 137 Finalizing the Value Creation Plan 141 Chapter 6: Quarter 2: A Bit Overwhelmed 147 Ensuring Leadership Coverage 150 Organizing the Value Creation Team 159 Managing the Value Creation Program 162 Targeting, Tracking, and Triaging Value Creation 165 Chapter 7: Quarter 3: Gaining Momentum 173 Managing with Performance Indicators 176 Standardizing Operating Cadence 182 Incorporating the Board of Directors 189 Overcoming Bumps in the Road 195 Chapter 8: Quarter 4: Ringing the Bell 203 Confirming VCP Results 206 Rewarding Success 210 Planning Strategy Pragmatically 212 Integrating Plans and Budgets 216 Investment Period Outputs 227 Chapter 9: Year 2: Improving Infrastructure 229 Organizing Effectively 231 Operating Efficiently 238 Sourcing Strategically and Spending Economically 247 Financing Internally 256 Chapter 10: Year 3: Expanding Beyond 263 Optimizing Profitability 266 Pricing Intelligently 271 Pipelining Systematically 279 Integrating Pragmatically 286 Chapter 11: Year X: The Exit 297 Exit Timing 300 The Exit Process 302 Exit Preparation 305 Enjoying the Rewards 309 Chapter 12: Conclusion 313 References 317 Index 319

Read more less

Book SynopsisThe companion workbook to the Investment Management volume in the CFA Institute's Portfolio Management in Practice series provides students and professionals with essential practice regarding key concepts in the portfolio management process. Filled with stimulating exercises, this text is designed to help learners explore the multifaceted topic of investment management in a meaningful and productive way. The Investment Management Workbook is structured to further readers' hands-on experience with a variety of learning outcomes, summary overview sections, challenging practice questions, and solutions. Featuring the latest tools and information to help users become confident and knowledgeable investors, this workbook includes sections on professionalism in the industry, fintech, hedge fund strategies, and more. With the workbook, readers will learn to: Form capital market expectations Understand the principles of the asseTable of ContentsPart I Learning Objectives, Summary Overview, and Problems 1 Chapter 1 Professionalism in the Investment Management 3 Learning Outcomes 3 Summary 3 Practice Problems 4 Chapter 2 Fintech in Investment Management 5 Learning Outcomes 5 Summary 5 Practice Problems 6 Chapter 3 Capital Market Expectations, Part 1: Framework and Macro Considerations 9 Learning Outcomes 9 Summary 10 Practice Problem 13 Chapter 4 Capital Market Expectations, Part 2: Forecasting Asset Class Returns 21 Learning Outcomes 21 Summary 22 Practice Problems 25 Chapter 5 Overview of Asset Allocation 35 Learning Outcomes 35 Summary 35 Practice Problems 37 Chapter 6 Principles of Asset Allocation 39 Learning Outcomes 39 Summary 40 Practice Problems 41 Chapter 7 Asset Allocation with Real-World Constraints 51 Learning Outcomes 51 Summary 51 Practice Problems 53 Chapter 8 Currency Management: An Introduction 63 Learning Outcomes 63 Summary 63 Practice Problems 66 Chapter 9 Overview of Fixed-Income Portfolio Management 79 Learning Outcomes 79 Summary 79 Practice Problems 81 Chapter 10 Liability-Driven and Index-Based Strategies 87 Learning Outcomes 87 Summary 87 Practice Problems 91 Chapter 11 Overview of Equity Portfolio Management 101 Learning Outcomes 101 Summary 101 Practice Problems 102 Chapter 12 Passive Equity Investing 105 Learning Outcomes 105 Summary 105 Practice Problems 107 Chapter 13 Active Equity Investing: Strategies 113 Learning Outcomes 113 Summary 113 Practice Problems 115 Chapter 14 Hedge Fund Strategies 121 Learning Outcomes 121 Summary 121 Practice Problems 124 Chapter 15 Overview of Private Wealth Management 131 Learning Outcomes 131 Summary 131 Practice Problems 133 Chapter 16 Topics in Private Wealth Management 141 Learning Outcomes 141 Summary 141 Practice Problems 144 Chapter 17 Portfolio Management for Institutional Investors 151 Learning Outcomes 151 Summary 152 Practice Problems 155 Chapter 18 Trade Strategy and Execution 163 Learning Outcomes 163 Summary 163 Practice Problems 165 Chapter 19 Portfolio Performance Evaluation 175 Learning Outcomes 175 Summary 176 Practice Problems 177 Chapter 20 Investment Manager Selection 181 Learning Outcomes 181 Summary 181 Practice Problems 183 Part II Solutions 199 Chapter 1 Professionalism in the Investment Management 201 Solutions 201 Chapter 2 Fintech in Investment Management 203 Solutions 203 Chapter 3 Capital Market Expectations, Part I: Framework and Macro Considerations 205 Solutions 205 Chapter 4 Capital Market Expectations, Part II: Forecasting Asset Class Returns 211 Solutions 211 Chapter 5 Overview of Asset Allocation 219 Solutions 219 Chapter 6 Principles of Asset Allocation 221 Solutions 221 Chapter 7 Asset Allocation with Real-World Constraints 229 Solutions 229 Chapter 8 Currency Management: An Introduction 235 Solutions 235 Chapter 9 Overview of Fixed-Income Portfolio Management 249 Solutions 249 Chapter 10 Liability-Driven and Index-Based Strategies 253 Solutions 253 Chapter 11 Overview of Equity Portfolio Management 259 Solutions 259 Chapter 12 Passive Equity Investing 263 Solutions 263 Chapter 13 Active Equity Investing: Strategies 267 Solutions 267 Chapter 14 Hedge Fund Strategies 273 Solutions 273 Chapter 15 Overview of Private Wealth Management 283 Solutions 283 Chapter 16 Topics in Private Wealth Management 291 Solutions 291 Chapter 17 Portfolio Management for Institutional Investors 299 Solutions 299 Chapter 18 Trade Strategy and Execution 305 Solutions 305 Chapter 19 Portfolio Performance Evaluation 315 Solutions 315 Chapter 20 Investment Manager Selection 319 Solutions 319 About the CFA Program 333

Read more less

Book SynopsisEducate yourself about finance and socially conscious investing with a woman-centered approach Activate Your Money provides the foundational support women need to talk to each other about their money, invest to grow their wealth, and to take the actions required to shift their assets into alignment with their values. Written for smart, savvy women who want to feel financially empowered, Activate Your Money starts where other personal finance books leave off. It delivers the depth of information you need to make informed investment decisions across your entire portfolio. Starting with checking and savings accounts and proceeding asset class by asset class, this book provides you with core investment knowledge, as well as concrete examples about how and where you can invest your money in alignment with your values. You don''t have to do it alone. As women, our strength is in relationships, and this book will help you use that strength to attain betteTable of ContentsPreface: Welcome to a Brave New World xiii Part 1 Establishing Your Foundation 1 Chapter 1 Values-Aligned Investing: Step into Your Financial Power 3 Chapter 2 Your Relationship with Money: Invest with Your Heart and Mind 15 Chapter 3 Your Financial Foundation: Master Some Core Principles 31 Part 2 Crafting an Aligned Portfolio 53 Chapter 4 Cash: Activate Your Savings and Checking Accounts 55 Chapter 5 Cash Alternatives: Yield Higher Returns for Idle Cash 77 Chapter 6 Fixed Income: Grasp the Potential of Bonds 87 Chapter 7 Public Equities: Invest in the Stock Market with Confidence 113 Chapter 8 Public Equities: Select Values-Aligned Investments 133 Chapter 9 Private Investments: Explore Private Debt, Private Equity, and Angel Investing 153 Chapter 10 Alternative Investments: Achieve Deeper Diversification and Impact 177 Chapter 11 Maximize Your Philanthropy: Finish with Grants and Concessionary Investing 199 Part 3 Building a Community of Support 221 Chapter 12 Professional Support: Find Values-Aligned Financial Advisors 223 Chapter 13 Retirement Accounts: Build Values into IRAs and Employer Plans 243 Chapter 14 Gather Your Friends: Get Together for Fun and Profit 261 Conclusion Stepping into Your Financial Future 273 Glossary275 Acknowledgments 285 About the Author 289 Index 291

Read more less

Book SynopsisTable of ContentsPart I Learning Objectives, Summary Overview, and Problems Chapter 1 Fixed-Income Securities: Defining Elements 3 Learning Outcomes 3 Summary Overview 3 Problems 5 Chapter 2 Fixed-Income Markets: Issuance, Trading, and Funding 9 Learning Outcomes 9 Summary Overview 9 Problems 11 Chapter 3 Introduction to Fixed-Income Valuation 15 Learning Outcomes 15 Summary Overview 15 Problems 18 Chapter 4 Introduction to Asset-Backed Securities 25 Learning Outcomes 25 Summary Overview 25 Problems 28 Chapter 5 Understanding Fixed-Income Risk and Return 33 Learning Outcomes 33 Summary Overview 34 Problems 36 Chapter 6 Fundamentals of Credit Analysis 41 Learning Outcomes 41 Summary Overview 41 Problems 45 Chapter 7 The Term Structure and Interest Rate Dynamics 53 Learning Outcomes 53 Summary Overview 53 Problems 54 Chapter 8 The Arbitrage-Free Valuation Framework 65 Learning Outcomes 65 Summary Overview 65 Problems 66 Chapter 9 Valuation and Analysis of Bonds with Embedded Options 75 Learning Outcomes 75 Summary Overview 76 Problems 78 Chapter 10 Credit Analysis Models 89 Learning Outcomes 89 Summary Overview 89 Problems 90 Chapter 11 Credit Default Swaps 99 Learning Outcomes 99 Summary Overview 99 Problems 100 Chapter 12 Overview of Fixed-Income Portfolio Management 105 Learning Outcomes 105 Summary Overview 105 Problems 107 Chapter 13 Liability-Driven and Index-Based Strategies 113 Learning Outcomes 113 Summary Overview 113 Problems 117 Chapter 14 Learning Outcomes 125 Summary Overview 125 Problems 127 Chapter 15 Fixed-Income Active Management: Credit Strategies 133 Learning Outcomes 133 Summary Overview 134 Problems 135 Part II Solutions Chapter 1 Fixed-Income Securities: Defining Elements 145 Solutions 145 Chapter 2 Fixed-Income Markets: Issuance, Trading, and Funding 149 Solutions 149 Chapter 3 Introduction to Fixed-Income Valuation 153 Solutions 153 Chapter 4 Introduction to Asset-Backed Securities 167 Solutions 167 Chapter 5 Understanding Fixed-Income Risk and Return 175 Solutions 175 Chapter 6 Fundamentals of Credit Analysis 183 Solutions 183 Chapter 7 The Term Structure and Interest Rate Dynamics 189 Solutions 189 Chapter 8 The Arbitrage-Free Valuation Framework 197 Solutions 197 Chapter 9 Valuation and Analysis of Bonds with Embedded Options 203 Solutions 203 Chapter 10 Credit Analysis Models 211 Solutions 211 Chapter 11 Credit Default Swaps 225 Solutions 225 Chapter 12 Overview of Fixed-Income Portfolio Management 229 Solutions 229 Chapter 13 Liability-Driven and Index-Based Strategies 233 Solutions 233 Chapter 14 Yield Curve Strategies 239 Solutions 239 Chapter 15 Fixed-Income Active Management: Credit Strategies 243 Solutions 243 About the CFA Program 247

Read more less

Book SynopsisTable of ContentsForeword xiii Introduction xv Prelude xv The Start of Something Life Changing xv Philosophy of the Trading Mindwheel xxii The Axle Mindset: Beliefs, Belief Systems, Emotions, and Habits 1 Jesse Livermore’s Story 2 Mindset Is Everything 3 Taking Inventory of Our Beliefs 3 2 A.M. Wakeup Call 4 Deconstructing Beliefs and Belief Systems 6 Write Your Beliefs 9 Emotions and Emotionality 14 The Marathon 15 Healing Wounds 16 When White Knuckling Fails 18 Meditation Is a Marvelous Tool! 21 Seek Clarity 22 Equanimity 33 Spoke 1 Journaling: Step One of Accountability and Continuous Improvement 35 What to Journal About 37 Types of Journals 44 Trading Routines 46 Spoke 2 Analysis: Analyzing Trades and Markets 55 Three Things I Learned the Hard Way about Trading 56 Analyzing Trades and Analyzing Markets 69 Influences and Studies 72 Fundamental Analysis: Defining Our Universe 74 Defining Our Setups 86 Developing a Funnel 96 Analyzing Markets 96 Spoke 3 Risk: Initial Capital Risk, Position Sizing, Potential Reward 107 Risks Involved in Risk 109 Mindsets Needed for Risking Capital 115 Ways to Effectively Manage Risk 122 Spoke 4 Trade Management: Managing Risk throughout the Life of the Trade 137 Life Cycle of a Trade 139 Beginning of the Trade 140 Four Types of Exits 143 When to Sell in Stages vs. When to Sell It All 154 When to Add 159 Dealing with Earnings Announcements 163 Spoke 5 Portfolio Management: The BIG Picture and Assessing Our Total Risk 165 Assessing “Portfolio Heat” 166 Paul’s Story 168 Setting Up Circuit Breakers 170 Spoke 6 Post Analysis: Step Two of Continuous Improvement 173 What to Include in Post Analysis? How Long and How Often? 174 Getting Organized 176 Three Habits That Will Help You Improve 179 Discipline + Balance = Sustainable Success 182 Spoke 7 Testing: Factor Modeling, Back Testing, and Forward Testing 187 Factor Modeling 188 Back Testing 192 Forward Testing 193 Conclusion 197 Acknowledgments and Inspirations 199 About the Author 201 Index 203

Read more less

Book SynopsisSystematically secure your financial futureDummies makes it easy Factor Investing For Dummies helps you go beyond the investment basics, with proven techniques for making informed and sophisticated investment decisions. Using factor investing, you'll select stocks based on some predetermined, well, factors. Momentum, value, interest rates, economic growth, credit risk, liquidityall these things can help you identify killer stocks and improve your returns. This book explains it all, and helps you implement a strategic factor investing plan, so you can boost your portfolio's performance, reduce volatility, and enhance diversification. You'll also learn what not to do, with coverage of the factors that have failed to deliver consistent returns over time. We explore factor-based ETFS and loads of other ideas for injecting some factors into your investment game. Learn what factor investing is and how you can use it to level up your portfolioUnderstand the various types of factors and how to use them to select winning stocksChoose from a bunch of factor investing strategies, or build one of your ownGenerate wealth in a more sophisticated, more effective wayThis is the perfect Dummies guide for beginner to seasoned investors who want to explore more consistent outperformance potential. Factor Investing For Dummies can also help portfolio managers, consultants, academics, and students who want to understand more about the science of factor investing.Table of ContentsIntroduction 1 Part 1: Starting with Factor Investing Basics 5 Chapter 1: Counting on Factor Investing 7 Chapter 2: Why Use Factors? 15 Chapter 3: Knowing Which Factors Are Worth Your Time 25 Chapter 4: Beating the Market without Timing It 33 Part 2: Going Deep with Factor Strategies 41 Chapter 5: Making Room for the Growth Factor 43 Chapter 6: Value Investing with Factors 51 Chapter 7: Banking on Momentum with Winners and Losers 59 Chapter 8: Sizing Up a Stock’s Size 71 Chapter 9: Dividend Income Using Factors 79 Part 3: Using Factor Investing in Your Portfolio 89 Chapter 10: Using Brokerage Orders with Factor Investing 91 Chapter 11: Using Macro Factors 101 Chapter 12: Combining Multiple Factors for a Powerhouse Portfolio 113 Chapter 13: Going Global with Factor Investing 121 Chapter 14: Performing Technical Analysis for Factor Investing 129 Chapter 15: Using Stock-Screening Tools in Your Factor Investing 139 Part 4: Applying More Complex Investment Tactics 149 Chapter 16: Outsourcing with ETFs and Mutual Funds 151 Chapter 17: Bonds and Factor Investing 161 Chapter 18: Using Options with Factor Investing 173 Chapter 19: Watching the Factors that Lead to Major Market Moves 183 Chapter 20: Considering Taxes 191 Part 5: The Part of Tens 207 Chapter 21: Ten Do-It-Yourself Factors 209 Chapter 22: Ten Ways to Mess Up Your Investment Plan 215 Chapter 23: Ten Non-Factor Strategies and Considerations 223 Chapter 24: Ten Financial Problems You Can Navigate with Factor Investing 229 Part 6: Appendixes 239 Appendix A: Resources for Factor Investors 241 Appendix B: Factor-Based ETFs 253 Index 269

Read more less

Book SynopsisA complete guide to sovereign wealth funds written by and for industry practitioners Sovereign wealth funds (SWFs) aren't new, but they are often misunderstood. As they've attracted more attention over the last decade and grown greatly in size, the need for a new and thorough resource on SWFs has never been greater.Table of ContentsForeword xi List of Tables and Figures xiii List of Abbreviations xv Acknowledgements xvii Introduction 1 A few stylized facts 2 SWFs under the spotlight 4 Defining SWFs 9 Misplaced fears 10 The plan of the book 13 1 The Macroeconomic Dynamics Behind SWFs 17 1.1 Persistent current account surpluses translate into accumulation of foreign assets 18 1.2 Absorption constraints: the rationale for establishing SWFs and FWFs 21 1.3 The management of natural resources windfall 24 1.4 Commodities demand and the super‐cycle theory 29 1.5 SWFs as alternative to an income tax system: what if Norway becomes like Saudi Arabia? 33 2 Size and Growth of SWFs Assets 37 2.1 Size and clusters of SWFs 38 2.2 Drivers of SWFs asset growth 43 2.3 The optimal level of foreign exchange reserves 45 2.4 Future growth in FX reserves: commodity- versus noncommodity-exporting countries 47 2.5 Size of SWFs by 2016 49 Appendix: How big could SWFs be by 2016? 54 3 SWFs as Investors in Global Markets 71 3.1 Clustering SWFs by objectives and investment profiles 74 3.2 SWFs as strategic investors in domestic and global markets 83 3.3 Geographical and sector distribution of SWF strategic investments: the 2007–2008 surge of investments in Western financials 86 3.4 Investment performance of SWFs and the impact of the financial crisis 94 3.5 Explicit and implicit liabilities of SWFs 97 3.6 Long-term investments: SWFs as the ultimate risk bearers 99 4 Risk Management for SWFs 105 4.1 The crisis in retrospect 108 4.2 The complex qualitative nature of risk: uncertainty, chaos, black swans and fat tails 111 4.3 Banking regulation, herd behaviour and contagion 113 4.4 The evolution of the regulatory framework 118 4.5 Sketches of risk management for SWFs 121 4.6 An unconventional dimension of risk management: shareholders vs stakeholders 129 5 SWFs in the Geopolitics of the Twenty-first Century 131 5.1 The shift to the East of the global economy: the New Silk Route 137 5.2 The law of unintended consequences? China’s influence through financial muscle 141 5.3 SWFs investing in the less developed economies: Africa as the last investment frontier 145 5.4 The new financial geography: the emerging multipolar financial architecture 147 5.5 The dominance of the US$ in global financial markets: SWFs as US$ diversifiers 149 5.6 SWFs and the new regulatory environment for financial institutions: the upcoming ‘war for capital’ 152 6 The Politics of SWFs Engagement 155 6.1 National responses to the growing role of SWFs 156 6.2 International response to the growing role of SWFs 159 6.3 SWFs’ response to international pressure 161 6.4 Santiago Principles: rationale, implementation and reality 163 6.5 A digression on public versus private role in the economy 168 7 Wrapping Up 173 7.1 Towards a multipolar world 175 7.2 Governments’ activism in economic and financial affairs 176 7.3 Barbarian at the gates or welcome partners? 177 7.4 The end of the savings gluts and the coming era of capital scarcity 179 7.5 Towards a multicurrency regime 180 7.6 A proposal to allay fears over transparency 185 7.7 The new responsibilities on the global scene 186 Bibliography 189 Index 199

Read more less

Book Synopsis

Read more less

Book SynopsisAn engaging and practical romp through contemporary financial and economic historyand what it means for your financial future Economic booms and busts are happening with more frequency. Since the turn of the new millennium, fortunes have been made and lost at a blistering pace. Each boom is like the tension building up before an earthquake. Seismologists can detect the build-up, but they can''t necessarily explain whyor whenthe next quake will hit. Economic busts can be equally devastatingand followed by numerous aftershocks. In this entertaining romp through recent economic and financial history, best-selling author, Addison Wiggin, traces the primary trends that have led up to rapid economic growth and innovation while keeping an eye on the inevitable downturn. The author practices literary economics, telling stories about the characters behind the scenes and their motives, making this wide-ranging book easy-to-read. The current edition has been revised, adaptTable of ContentsForeword ix Preface to the 2009 Edition: Confessions of a Newsletter Man xiii Acknowledgments xxv Introduction: Hell in a Bucket 1 Part One: Wildness Lies in Wait 9 Chapter 1: The Old “New Economy” 11 Chapter 2: Homo Digitalis, or “If You Know, You Know” 25 Chapter 3: Dreamers and Schemers 35 Part Two: The Fabulous Destiny of Alan Greenspan 49 Chapter 4: In the Bath Blowing Bubbles 51 Chapter 5: “Free Money” and Other New Era Hallucinations 63 Chapter 6: A Theory of Moral Hazards 95 Chapter 7: First It Giveth . . . 113 Part Three: Extraordinary Popular Delusions 127 Chapter 8: John Law and the Origins of a Bad Idea 129 Chapter 9: The Digital Age of Crowds 147 Chapter 10: The Crack-Up Boom 169 Chapter 11: The Party at the End of the World 225 Notes 235 Index 245

Read more less

Book Synopsis

Read more less

Book SynopsisAn accessible and mathematically rigorous resource for masters and PhD students In Foundations of the Pricing of Financial Derivatives: Theory and Analysis two expert finance academics with professional experience deliver a practical new text for doctoral and masters' students and also new practitioners. The book draws on the authors extensive combined experience teaching, researching, and consulting on this topic and strikes an effective balance between fine-grained quantitative detail and high-level theoretical explanations. The authors fill the gap left by books directed at masters'-level students that often lack mathematical rigor. Further, books aimed at mathematically trained graduate students often lack quantitative explanations and critical foundational materials. Thus, this book provides the technical background required to understand the more advanced mathematics used in this discipline, in class, in research, and in practice. Readers will also find: Tables, figures, line draTable of ContentsPreface xv Chapter 1 Introduction and Overview 1 1.1 Motivation for This Book 2 1.2 What Is a Derivative? 6 1.3 Options Versus Forwards, Futures, and Swaps 8 1.4 Size and Scope of the Financial Derivatives Markets 9 1.5 Outline and Features of the Book 12 1.6 Final Thoughts and Preview 14 Questions and Problems 15 Notes 15 Part I Basic Foundations for Derivative Pricing Chapter 2 Boundaries, Limits, and Conditions on Option Prices 19 2.1 Setup, Definitions, and Arbitrage 20 2.2 Absolute Minimum and Maximum Values 21 2.3 The Value of an American Option Relative to the Value of a European Option 22 2.4 The Value of an Option at Expiration 22 2.5 The Lower Bounds of European and American Options and the Optimality of Early Exercise 23 2.6 Differences in Option Values by Exercise Price 31 2.7 The Effect of Differences in Time to Expiration 37 2.8 The Convexity Rule 38 2.9 Put-Call Parity 40 2.10 The Effect of Interest Rates on Option Prices 47 2.11 The Effect of Volatility on Option Prices 47 2.12 The Building Blocks of European Options 48 2.13 Recap and Preview 49 Questions and Problems 50 Notes 51 Chapter 3 Elementary Review of Mathematics for Finance 53 3.1 Summation Notation 53 3.2 Product Notation 55 3.3 Logarithms and Exponentials 56 3.4 Series Formulas 58 3.5 Calculus Derivatives 59 3.6 Integration 68 3.7 Differential Equations 70 3.8 Recap and Preview 71 Questions and Problems 71 Notes 73 Chapter 4 Elementary Review of Probability for Finance 75 4.1 Marginal, Conditional, and Joint Probabilities 75 4.2 Expectations, Variances, and Covariances of Discrete Random Variables 80 4.3 Continuous Random Variables 86 4.4 Some General Results in Probability Theory 93 4.5 Technical Introduction to Common Probability Distributions Used in Finance 95 4.6 Recap and Preview 109 Questions and Problems 109 Notes 110 Chapter 5 Financial Applications of Probability Distributions 113 5.1 The Univariate Normal Probability Distribution 113 5.2 Contrasting the Normal with the Lognormal Probability Distribution 119 5.3 Bivariate Normal Probability Distribution 123 5.4 The Bivariate Lognormal Probability Distribution 125 5.5 Recap and Preview 126 Appendix 5A An Excel Routine for the Bivariate Normal Probability 126 Questions and Problems 128 Notes 128 Chapter 6 Basic Concepts in Valuing Risky Assets and Derivatives 129 6.1 Valuing Risky Assets 129 6.2 Risk-Neutral Pricing in Discrete Time 130 6.3 Identical Assets and the Law of One Price 133 6.4 Derivative Contracts 134 6.5 A First Look at Valuing Options 136 6.6 A World of Risk-Averse and Risk-Neutral Investors 137 6.7 Pricing Options Under Risk Aversion 138 6.8 Recap and Preview 138 Questions and Problems 139 Notes 139 Part II Discrete Time Derivatives Pricing Theory Chapter 7 The Binomial Model 143 7.1 The One-Period Binomial Model for Calls 143 7.2 The One-Period Binomial Model for Puts 146 7.3 Arbitraging Price Discrepancies 149 7.4 The Multiperiod Model 151 7.5 American Options and Early Exercise in the Binomial Framework 154 7.6 Dividends and Recombination 155 7.7 Path Independence and Path Dependence 159 7.8 Recap and Preview 159 Appendix 7A Derivation of Equation (7.9) 159 Appendix 7B Pascal’s Triangle and the Binomial Model 161 Questions and Problems 163 Notes 163 Chapter 8 Calculating the Greeks in the Binomial Model 165 8.1 Standard Approach 165 8.2 An Enhanced Method for Estimating Delta and Gamma 170 8.3 Numerical Examples 172 8.4 Dividends 174 8.5 Recap and Preview 175 Questions and Problems 175 Notes 176 Chapter 9 Convergence of the Binomial Model to the Black-Scholes-Merton Model 177 9.1 Setting Up the Problem 177 9.2 The Hsia Proof 181 9.3 Put Options 187 9.4 Dividends 188 9.5 Recap and Preview 188 Questions and Problems 189 Notes 190 Part III Continuous Time Derivatives Pricing Theory Chapter 10 The Basics of Brownian Motion and Wiener Processes 193 10.1 Brownian Motion 193 10.2 The Wiener Process 195 10.3 Properties of a Model of Asset Price Fluctuations 196 10.4 Building a Model of Asset Price Fluctuations 199 10.5 Simulating Brownian Motion and Wiener Processes 202 10.6 Formal Statement of Wiener Process Properties 205 10.7 Recap and Preview 207 Appendix 10A Simulation of the Wiener Process and the Square of the Wiener Process for Successively Smaller Time Intervals 207 Questions and Problems 208 Notes 209 Chapter 11 Stochastic Calculus and Itô’s Lemma 211 11.1 A Result from Basic Calculus 211 11.2 Introducing Stochastic Calculus and Itô’s Lemma 212 11.3 Itô’s Integral 215 11.4 The Integral Form of Itô’s Lemma 216 11.5 Some Additional Cases of Itô’s Lemma 217 11.6 Recap and Preview 219 Appendix 11A Technical Stochastic Integral Results 220 11A.1 Selected Stochastic Integral Results 220 11A.2 A General Linear Theorem 224 Questions and Problems 229 Notes 230 Chapter 12 Properties of the Lognormal and Normal Diffusion Processes for Modeling Assets 231 12.1 A Stochastic Process for the Asset Relative Return 232 12.2 A Stochastic Process for the Asset Price Change 235 12.3 Solving the Stochastic Differential Equation 236 12.4 Solutions to Stochastic Differential Equations Are Not Always the Same as Solutions to Corresponding Ordinary Differential Equations 237 12.5 Finding the Expected Future Asset Price 238 12.6 Geometric Brownian Motion or Arithmetic Brownian Motion? 240 12.7 Recap and Preview 241 Questions and Problems 242 Notes 242 Chapter 13 Deriving the Black-Scholes-Merton Model 245 13.1 Derivation of the European Call Option Pricing Formula 245 13.2 The European Put Option Pricing Formula 249 13.3 Deriving the Black-Scholes-Merton Model as an Expected Value 250 13.4 Deriving the Black-Scholes-Merton Model as the Solution of a Partial Differential Equation 254 13.5 Decomposing the Black-Scholes-Merton Model into Binary Options 258 13.6 Black-Scholes-Merton Option Pricing When There Are Dividends 259 13.7 Selected Black-Scholes-Merton Model Limiting Results 259 13.8 Computing the Black-Scholes-Merton Option Pricing Model Values 262 13.9 Recap and Preview 265 Appendix 13.A Deriving the Arithmetic Brownian Motion Option Pricing Model 265 Questions and Problems 269 Notes 270 Chapter 14 The Greeks in the Black-Scholes-Merton Model 271 14.1 Delta: The First Derivative with Respect to the Underlying Price 274 14.2 Gamma: The Second Derivative with Respect to the Underlying Price 274 14.3 Theta: The First Derivative with Respect to Time 275 14.4 Verifying the Solution of the Partial Differential Equation 275 14.5 Selected Other Partial Derivatives of the Black-Scholes-Merton Model 277 14.6 Partial Derivatives of the Black-Scholes-Merton European Put Option Pricing Model 278 14.7 Incorporating Dividends 279 14.8 Greek Sensitivities 280 14.9 Elasticities 283 14.10 Extended Greeks of the Black-Scholes-Merton Option Pricing Model 284 14.11 Recap and Preview 284 Questions and Problems 285 Notes 286 Chapter 15 Girsanov’s Theorem in Option Pricing 287 15.1 The Martingale Representation Theorem 287 15.2 Introducing the Radon-Nikodym Derivative by Changing the Drift for a Single Random Variable 289 15.3 A Complete Probability Space 291 15.4 Formal Statement of Girsanov’s Theorem 292 15.5 Changing the Drift in a Continuous Time Stochastic Process 293 15.6 Changing the Drift of an Asset Price Process 297 15.7 Recap and Preview 300 Questions and Problems 301 Notes 302 Chapter 16 Connecting Discrete and Continuous Brownian Motions 303 16.1 Brownian Motion in a Discrete World 303 16.2 Moving from a Discrete to a Continuous World 306 16.3 Changing the Probability Measure with the Radon-Nikodym Derivative in Discrete Time 310 16.4 The Kolmogorov Equations 313 16.5 Recap and Preview 321 Questions and Problems 322 Notes 322 Part IV Extensions and Generalizations of Derivative Pricing Chapter 17 Applying Linear Homogeneity to Option Pricing 327 17.1 Introduction to Exchange Options 327 17.2 Homogeneous Functions 328 17.3 Euler’s Rule 330 17.4 Using Linear Homogeneity and Euler’s Rule to Derive the Black-Scholes-Merton Model 330 17.5 Exchange Option Pricing 333 17.6 Spread Options 337 17.7 Forward Start Options 339 17.8 Recap and Preview 341 Appendix 17A Linear Homogeneity and the Arithmetic Brownian Motion Model 342 Appendix 17B Multivariate Itô’s Lemma 344 Appendix 17C Greeks of the Exchange Option Model 345 Questions and Problems 347 Notes 347 Chapter 18 Compound Option Pricing 349 18.1 Equity as an Option 350 18.2 Valuing an Option on the Equity as a Compound Option 351 18.3 Compound Option Boundary Conditions and Parities 353 18.4 Geske’s Approach to Valuing a Call on a Call 356 18.5 Characteristics of Geske’s Call on Call Option 358 18.6 Geske’s Call on Call Option Model and Linear Homogeneity 359 18.7 Generalized Compound Option Pricing Model 360 18.8 Installment Options 361 18.9 Recap and Preview 362 Appendix 18A Selected Greeks of the Compound Option 362 Questions and Problems 363 Notes 363 Chapter 19 American Call Option Pricing 365 19.1 Closed-Form American Call Pricing: Roll-Geske-Whaley 366 19.2 The Two-Payment Case 370 19.3 Recap and Preview 372 Appendix 19A Numerical Example of the One-Dividend Model 373 Questions and Problems 374 Notes 374 Chapter 20 American Put Option Pricing 377 20.1 The Nature of the Problem of Pricing an American Put 377 20.2 The American Put as a Series of Compound Options 378 20.3 Recap and Preview 380 Questions and Problems 380 Notes 381 Chapter 21 Min-Max Option Pricing 383 21.1 Characteristics of Stulz’s Min-Max Option 383 21.2 Pricing the Call on the Min 388 21.3 Other Related Options 393 21.4 Recap and Preview 395 Appendix 21A Multivariate Feynman-Kac Theorem 395 Appendix 21B An Alternative Derivation of the Min-Max Option Model 396 Questions and Problems 397 Notes 397 Chapter 22 Pricing Forwards, Futures, and Options on Forwards and Futures 399 22.1 Forward Contracts 399 22.2 Pricing Futures Contracts 404 22.3 Options on Forwards and Futures 409 22.4 Recap and Preview 412 Questions and Problems 413 Notes 414 Part V Numerical Methods Chapter 23 Monte Carlo Simulation 417 23.1 Standard Monte Carlo Simulation of the Lognormal Diffusion 417 23.2 Reducing the Standard Error 421 23.3 Simulation with More Than One Random Variable 424 23.4 Recap and Preview 424 Questions and Problems 425 Notes 426 Chapter 24 Finite Difference Methods 429 24.1 Setting Up the Finite Difference Problem 429 24.2 The Explicit Finite Difference Method 431 24.3 The Implicit Finite Difference Method 434 24.4 Finite Difference Put Option Pricing 435 24.5 Dividends and Early Exercise 435 24.6 Recap and Preview 436 Questions and Problems 436 Notes 436 Part VI Interest Rate Derivatives Chapter 25 The Term Structure of Interest Rates 439 25.1 The Unbiased Expectations Hypothesis 440 25.2 The Local Expectations Hypothesis 442 25.3 The Difference Between the Local and Unbiased Expectations Hypotheses 446 25.4 Other Term Structure of Interest Rate Hypotheses 447 25.5 Recap and Preview 450 Questions and Problems 450 Notes 450 Chapter 26 Interest Rate Contracts: Forward Rate Agreements, Swaps, and Options 453 26.1 Interest Rate Forwards 454 26.2 Interest Rate Swaps 459 26.3 Interest Rate Options 469 26.4 Recap and Preview 471 Questions and Problems 471 Notes 472 Chapter 27 Fitting an Arbitrage-Free Term Structure Model 475 27.1 Basic Structure of the HJM Model 476 27.2 Discretizing the HJM Model 479 27.3 Fitting a Binomial Tree to the HJM Model 481 27.4 Filling in the Remainder of the HJM Binomial Tree 485 27.5 Recap and Preview 489 Questions and Problems 490 Notes 491 Chapter 28 Pricing Fixed-Income Securities and Derivatives Using an Arbitrage-Free Binomial Tree 493 28.1 Zero-Coupon Bonds 493 28.2 Coupon Bonds 496 28.3 Options on Zero-Coupon Bonds 497 28.4 Options on Coupon Bonds 498 28.5 Callable Bonds 499 28.6 Forward Rate Agreements (FRAs) 501 28.7 Interest Rate Swaps 503 28.8 Interest Rate Options 505 28.9 Interest Rate Swaptions 506 28.10 Interest Rate Futures 508 28.11 Recap and Preview 510 Questions and Problems 510 Notes 510 Part VII Miscellaneous Topics Chapter 29 Option Prices and the Prices of State-Contingent Claims 513 29.1 Pure Assets in the Market 514 29.2 Pricing Pure and Complex Assets 514 29.3 Numerical Example 518 29.4 State Pricing and Options in a Binomial Framework 519 29.5 State Pricing and Options in Continuous Time 522 29.6 Recap and Preview 525 Questions and Problems 525 Notes 526 Chapter 30 Option Prices and Expected Returns 527 30.1 The Basic Framework 527 30.2 Expected Returns on Options 529 30.3 Volatilities of Options 531 30.4 Options and the Capital Asset Pricing Model 531 30.5 Options and the Sharpe Ratio 532 30.6 The Stochastic Process Followed by the Option 533 30.7 Recap and Preview 535 Questions and Problems 535 Notes 536 Chapter 31 Implied Volatility and the Volatility Smile 537 31.1 Historical Volatility and the VIX 538 31.2 An Example of Implied Volatility 539 31.3 The Volatility Surface 546 31.4 The Perfect Substitutability of Options 547 31.5 Other Attempts to Explain the Implied Volatility Smile 549 31.6 How Practitioners Use the Implied Volatility Surface 550 31.7 Recap and Preview 551 Questions and Problems 551 Notes 553 Chapter 32 Pricing Foreign Currency Options 555 32.1 Definition of Terms 556 32.2 Option Payoffs 556 32.3 Valuation of the Options 557 32.4 Probability of Exercise 561 32.5 Some Terminology Confusion 563 32.6 Recap 563 Questions and Problems 564 Notes 565 References 567 Symbols Used 573 Symbols 573 Time-Related Notation 573 Instrument-Related Notation 574 About the Website 581 Index 583

Read more less

Book SynopsisAustralia's bestselling guide for smart investing in the sharemarket When it''s time to invest your earnings, you need accurate and trusted guidance that will weather cycles, outlive fads, and stand the test of time. In this 30th anniversary edition of definitive bestseller Top Stocks, market expert Martin Roth gives you the essential knowledge you need to grow your portfolio and profits. An invaluable resource for novices and professionals alike, Top Stocks 2024 shares the clear, objective information and tried-and-tested techniques you need to make right picks and get more for your money. You''ll learn how to use selection criteria and rigorous analysis to form a clear picture of the best low-risk, long-term value public companies to buy into. You''ll see beyond the hype, the pricing, and the punditry. And you'll become an expert at evaluating the best of the Australian sharemarket, using concrete factors like profitability, debt levels, and d

Read more less

Book SynopsisPrep for the Series 7 like a seasoned pro with this huge collection of practice questions and answer explanations Heads up, prospective Series 7 takers! Word is out that this popular exam's latest update made it a lot tougher. But don't sweat it. With the newly revised second edition of Series 7: 1001 Practice Questions For Dummies you'll get all the practice you need to maximize your chances of acing the test your first time around. This book shows you where your knowledge is strong and where you need work, letting you focus your efforts where they will make the most difference. Here's what's included: 1001 realistic and challenging practice questions with detailed answer explanationsCoverage of every domain and competency tested on the examNew questions comprehensively aligned with the latest version of the Series 7 examA must-have study aid perfect for anyone ready to take their next step on the road to a new career in securities trading, Series 7: 1001 Practice Questions For Dummies will help you banish test anxiety, improve your odds on the exam, and give you all the tools you need to succeed.Table of ContentsIntroduction 1 Part 1: Practicing the Questions 3 Chapter 1: Underwriting Securities 5 Chapter 2: Equity Securities 15 Chapter 3: Corporate and U.S. Government Debt Securities 25 Chapter 4: Municipal Bonds 39 Chapter 5: Margin Accounts 59 Chapter 6: Packaged Securities 67 Chapter 7: Direct Participation Programs 79 Chapter 8: Options 85 Chapter 9: Portfolio and Securities Analysis 107 Chapter 10: Orders and Trades 119 Chapter 11: Taxes and Retirement Plans 129 Chapter 12: Rules and Regulations 141 Part 2: Checking Your Answers 161 Chapter 13: Answers and Explanations 163 Index 347

Read more less

Book SynopsisInPrivate Capital: The Complete Guide to Private Markets Investing,renowned private markets investor and expert Dr. Stefan W. Hepp delivers an insightful and comprehensive exploration of the history, nature, and influence of private market investing. The author offers a robust examination of the key practical and conceptual issues faced by investors as they move forward into the future. In the book, you'll find fulsome discussions of the rise of private market investment following the conclusion of World War II, as well as why the limited partnership became the dominant investment vehicle for private equity. You'll also discover the importance of the convergence of technology, government, academia, and venture capital that came to define what we now know as Silicon Valley. The book includes: Explanations of the emergence of buyout firms, as well as why and how buyouts differ from other forms of mergers and acquisitionsExaminations of the explosive growth of private equity and other private asset classes since the turn of the millenniumDiscussions of the issues set to dominate the future of private markets, including ESG investing, value creation, unicorns, special purpose acquisition companies (SPACs), and more A must-read book for regulators, investors, asset managers, entrepreneurs, founders, and other businesspeople, Private Capitalwill earn a place on the bookshelves of anyone with a stake or interest in private equity and other private asset classes.Table of ContentsAbbreviations ix Introduction 1 Part I The Beginning 9 Chapter 1 Funding Private Enterprise 11 Chapter 2 Enterprise Financing in the USA from WWII to the 1960s 67 Chapter 3 How Silicon Valley Came to Be 77 Chapter 4 US Private Equity During the 1960s and 1970s 111 Part II Booms and Busts 157 Chapter 5 Private Equity During the 1980s 159 Chapter 6 The 1990s: Dotcom Boom and Bust 193 Chapter 7 A Private Markets Boom Between Two Crises 261 Part III Becoming Indispensable 355 Chapter 8 The GFC and the Surge of Private Markets 357 Chapter 9 Responding to Shifting Dynamics: Intermediaries, VC, and Growth Financing 435 Chapter 10 Buyouts, Private Debt, and Real Assets During the Post-GFC Boom 517 References 607 Acknowledgments 671 About the Author 675 Index 677

Read more less

Book SynopsisMatthew Partridge is a Senior Writer for MoneyWeek magazine, Britain's leading weekly personal finance and investment magazine, based in London, UK. He previously worked for Citigroup, Lehman Brothers and an economics consultancy, and has a PhD in Economic History from the London School of Economics.Trade Review"A brilliant clear, original and insightful book. It is perfect for both novice and experienced investors. Every reader will learn something new from it." * Matthew Lynn, Daily Telegraph and MoneyWeek columnist *"Matthew Partridge is one of Britain's most experienced investment writers and he is also a trained historian - a rare and crucial combination. He eloquently navigates the stock market and its current trends, while maintaining a foothold in history and literature. This book provides a wealth of accessible knowledge for novices and seasoned investors alike." * Marina Gerner, Award-winning Journalist and Lecturer of Commerce and Culture at NYU London *Table of Contents Chapter - 00: Introduction; Chapter - 01: The basics of investing; Chapter - 02: Managing risk; Chapter - 03: The role of psychology in investing; Chapter - 04: Investing with the professionals; Chapter - 05: Types of investment vehicles; Chapter - 06: Picking an active fund; Chapter - 07: Value investing; Chapter - 08: Growth investing; Chapter - 09: Income investing; Chapter - 10: Investing in the aftermath of chaos; Chapter - 11: Other financial assets; Chapter - 12: Financial technology and alternative finance; Chapter - 13: Conclusion: The top 10 rules of investment;

Read more less

Book SynopsisNow in its sixth edition, Understanding Futures Markets by Robert Kolb (University of Colorado) and James Overdahl (Chief Economist of the Commodity Futures Trading Commission) provides the most comprehensive coverage of futures markets available.Table of Contents1. Futures Markets: Introduction. 2. Futures Markets: Refinements. 3. Futures Prices. 4. Using Futures Markets. 5. CommodityFutures Contracts. 6. A Bond Primer. 7. Interest Rate Futures: Introduction. 8. Interest Rate Futures: Refinements. 9. Securities Futures Products: Introduction. 10. Security Futures Products: Refinements. 11. Foreign Exchange Futures. 12. An Options Primer. 13. Options on Futures.

Read more less