Of course this is very bad news. It will create worldwide inflation. I’m OK with it, will raise my debt to 7 figures so inflation is good news for me. My math teacher once said to me “you are not really rich until you have debt of at least a million”. So probably this year I will get rich…
However, it is bad news for every consumer in the world…
Switzerland should have made an agreement with the USA decades ago. But we have too many farmers who have too big of influence to the politicians. Consumers pay.
Personally I don’t worry about fx because I consider it part of investing risk.
But investors need to be aware of it. I think lot of people might have caught off guard because for long time USD & US market were both in bull run in tandem. Now that correlation is breaking and for foreigners this reduces the overall net return.
Well. I understand that CH should made some agreement with US
But trying to open Agri market is a dangerous game. Large low cost producers can wipe out Swiss producers. Some things need to remain local for long term security.
Agree, but not at this cost. In war times Swiss farmers were converted to slaves and had to grow potatoes anyhow.
But protecting them in a way that we do now quits the market completely. There is no need for improvement if you make that kind of money. That way there will be no improvement, never.
Until now we could get away with it, other countries paid. But not anymore. The costs rise and rise, every industry has to pay for the farmers, even if the industry itself would need protection and is not protected. This is highly unfair!
Actually zero, as my real estate is worth more. But depending on my strategy I use up to 300% (momentum strategy) and up to 150% (dividend strategy, but only in bear markets).
ok, probably I didn’t phrase my question correctly.
In IBKR (and I guess it the same in all broker platforms), the credit line is tied to the assets held in the account.
For example, if I have (let’s just throw random numbers on the table) 1 Mn CHF in assets with IBKR, I might choose to limit my leverage to a fraction of that equity - for instance, keeping the loan < 300k CHF.
This would result in a ‘equity + loan’ of 700k CHF (equity: 1M, minus loan: 300k), giving a leverage ratio of 1 / 0.7 = 1.43 (relatively ‘small’ leverage, to stay on the safe side and manage the risk of margin calls in the event of a market drawdown)
I have portfolio margin which gives you a theoretical margin multiplier of 800%. Actually at highs I do only use 112.55%. My mechanical systems make me trade contrarian to the public which has the highest leverage at highs and the lowest at bear markets. I have the highest leverage at bear markets and the lowest at highs.
In a bear market my risky strategy may go to 300% multiplier and my divi strategy to 150%. Check the link earlier to my mechanical investment thread, there you find the exact formulas.
And there’s now a new tariff deadline for the 1st of August. Part of me says/hopes TACO, part of me remembers Dr House/Aesop saying “eventually the wolf really does come”. Oh well, I used up all my liquidity already and feel better for it.
“They’ll range in value from maybe 60% or 70% tariffs to 10% and 20% tariffs, but they’re going to be starting to go out sometime tomorrow,” Trump said.
That’s what markets love, clear guidance on what to expect.
Asked if countries would be afforded any flexibility with the tariff deadline, Trump said, “not really.” “They’ll start to pay on August 1. The money will start to come into the United States on August 1, in pretty much all cases,” Trump said.
„money will come into the United States“ - sounds so much better than „we‘ll heavily tax our citizens‘ consumption - hey, someone has to pay for my BBB“
What do we make of it - an echo of the April stock market drop, more US inflation, more Fed reluctance to lower rates?
If anyone is interested in how large trading firms manipulate the market, read this article
Post investigation , Jane street is barred from Indian markets. They made 88 million profit in a single day trading and many such days were found in the investigation to be market manipulation.
I believe Indian regulators were tipped because a significant portion of Jane street profits came from India last year while Indian market is still much smaller compared to global markets
Doesn’t this also have to do with all the trading restrictions in India? (Limited day Trading/short selling). That probably encourages more creative ways of doing the same (and can also explain higher market inefficiencies that can be exploited for profit)
Actually I don’t know for sure.
There are some trading rules but since I am not active in F&O , I don’t know for sure
But the article kind of shows systematic manipulation. I wonder if such things also happen in NYSE or this is limited to Indian markets where retail traders might not be so sophisticated
What I find strange is that Jane Street is supposed to be a market maker. The trading strategy that was published by the regulator seems more like an activity of a hedge fund. They are a very quantitative firm and pay interns $20k per month.
I think the Indian regulators attention came after it was revealed that Jane Street ran some very profitable trading strategy on the Indian market and Jane Street sued a Hedge Fund (Millenium) because a few employees defected and took the strategy with them, $1bn in profits in India according to the court documents (Source)
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may I ask how much leverage are you using ?
