Market Report – Mar 8 – 12, 2010
Dear Traders,
Yesterday many of you attended Dali’s talk at the Sime Convention Center. I hope you beneffited from his insights.
Archive for the ‘BillWermine’
Market Report for Mar 1-5, 2010
Dear Traders,
Below is commentary from the Agora Report which is focused to US based investors- I think it is relevant to us because of our exposure to our gold/ commodity investments as well as Australian Dollar.
China, Agora reports is more capitalistic than the US, Europe and the UK:· No capital gains tax
· No property tax
· No local or state taxes
· A reasonable 35% tax rate for the highest earners
· Corporate tax rates of zero percent for 3 years and 15% per year after that.
· No property tax
· No local or state taxes
· A reasonable 35% tax rate for the highest earners
· Corporate tax rates of zero percent for 3 years and 15% per year after that.
“Also, most importantly, it’s not a casino economy like the States. China will sell 30% more vehicles this year than in the U.S. 93% of those vehicles will be purchased cash upfront.
Market Report by Bill Feb 22-25, 2010
Dear Traders,
Our short TLT trade is working. This is a bet on a weaker US Bond Market and higher US Interest Rates.
Fundamentally, TLT short is supported because the China Investment Corp (CIC) sold a net 34 Billion in US Treasuries and took a 1.45 million share position in GLD, the gold ETF as well 2 million shares of OYL, the oil ETF.
They also took a 3.5 USD billion position in Canada’s TEC resources.
Why would any investor in his right mind lend money to a dead beat borrower and I think the Chinese are waking up to that fact.
The US is creating vast amounts of money out of thin air and what backs it up ? The promises of Bernenke and Obama ?
In my opinion production of sellable goods creats growth and jobs- this is real effort and efficient use of capital.
I read that there are over 30,000,000 government servants in the US and only 29,000,000 workers in the manufacturing industries that produce real goods for sale. This is a dramatic reversal from 1980 when there were less than 8 million government servants and 40 million manufacturing workers.
What does a government bureaucrat produce and how does he create growth and jobs?
Market Report Feb 17-19, 2010 by Bill
Dear Traders,
Here is what happened behind closed doors Friday, President Obama Signs Law Raising Public Debt Limit from $12.4 Trillion to $14.3 Trillion.
This was done without the scruitiny or coverage of the major news networks. Obama now has 18 % more money to continue bailouts of his 
favorered constituents including, unions, banks, Fannie May, and Wall St. This is the money he will spread around to get his chronies reelected in November.
favorered constituents including, unions, banks, Fannie May, and Wall St. This is the money he will spread around to get his chronies reelected in November.Market Report for Feb 8-12, 2010 by Bill Wermine
Dear Traders,
Our high quality shares strategy with dividends/ heavy cash position has protected us in the current correction. Remember that these shares are supported by professional players as they offer higher income in a low 
yield environment of 2 % fixed deposit rates.
yield environment of 2 % fixed deposit rates.Our capital losses from the KLSE 1308 high are less than 2 % but since JTI recently paid a 2.5 % dividend we are in profit.
