FORD

http://www.economist.com/business-finance/displaystory.cfm?story_id=15804598&fsrc=facebook&sa_campaign=facebook/newsanalysis&utm_source=Economist.com

This is such a great article which gives us a vision on the next couple years on where the automobile industry is going. The bet must be put on China if there is a real integration and the merger is successful.

Make money from Chile Earthquake

http://news.bbc.co.uk/2/hi/business/8541640.stm

Chile is one of the biggest producer of copper in the world, with a minimum of 20% of the world production. A supply shortage in copper will lead to an arbitrage opportunity .
I think that the price will go up more than $7600 and we might have a bubble.
Most of the mines are not affected so I surely believe that as a short trader , money can be made in a 3 months period before the market comes back to normal.

Credits Default swaps

http://www.bloomberg.com/apps/news?pid=20601109&sid=ah6BBc3DV8CU&pos=15

It is amazing to see how all of those europeans governments which had been talking about how bad is the financial system in Africa mainly and South America are doing the same exact mistakes.

I think Credit default swaps are very complex to use and in the case of government the appointed minister of finance or whoever is in charge can do much because of political pressure and end up creating a serious economical catastrophe.

Credit-default swap contracts may be the way to recovery

http://www.fins.com/Finance/Articles/SB126599122951844971/Credit-Default-Swap-Surge-Will-the-Notorious-CDS-Lead-a-Finance-Recovery?Type=0


This is just a very good article about credit default swaps and it is clear and well written.
I do believe as its has been point out in the article that derivatives will play an important role in the step to achieve recovery. The ability to control risk by strong and smart risk management tools.

How Greece is moving the market

http://online.wsj.com/article/SB10001424052748703382904575058990455882062.html?mod=WSJ_Markets_LEFTTopNews


The support of the "Broken" Greece is moving the market positively. If Greece is saved they won't be any spread on the European Zone and the Euro can still be strong , and we won't have to invest in gold or other commodities.
I will be bullish on the Euro and bearish on Gold.

Do your homework and let me make some money !!!!

http://www.bloomberg.com/apps/news?pid=20601103&sid=aS8tTww_3IDE

Since the beginning of this year , everybody is blaming their lost on the lack of regulations. There are new rules on every table of the finance committee waiting to be pass , Mr Paul Volcker is back. Pdt.Obama is talking to bankers and it is not related to monetary policy , Institution are being created or planning to be created to regulate what was already somehow regulated.
Bernie had steal money and falsified documents because of the lack of regulation ? No! he did it because most of the regulators was too lazy to listen to the whistle blowers.
AIG went belly up because of the lack of regulations? I don't think so ! they hedged and diversified poorly. Those credits swaps and all of those derivatives were backed buy fictitious underlying assets that greedy bankers approved.
Sovereign wealth funds, Countries and Corporation , Billionaires lost most of their assets because of the lack of regulation? No!
All of those lost happened because of greed and because the BASIC HOMEWORK were not done or were just done poorly and the appetite for return was just too much.

Why we should all refuse the excessive regulation is because it is going to decrease the risk and certainly the return on our investments. The market is efficient and we are living in a capitalist economy. The weaker and less skilled financial institutions should go bankrupt. If we encounter an arbitrage opportunity the market will immediately correct and regulate itself .
Instead of trying to have 100 new rules and 100000 pages the accent should just be put on increase financial literate salary, hiring young MBA with derivatives background in an "in-house" where they can do some meticulous homework and decrease the quantity of money lost in the market which will help the economy recover.

I love Coffee

How can we use derivatives instruments to make money on this upcoming raise of coffee prices?


http://www.bloomberg.com/apps/news?pid=20601109&sid=aMVwm88g8.es&pos=13

ISLAM and DERIVATIVES

I really don't see why derivatives should be banned under the ijara.
The main goal of any investor is to make money in whatever religious ruling power you trade in. If there is trade they should be risk and money to be make. In case you lose money due to the fact that you have a too big exposure then it is your own fault: you haven't read my blog. More so, the derivatives products are all back by underlying assets so a banned of derivatives trading should also be as a banned on stock trading or any single volatile asset.
I do not agree with the new regulations proposed by the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and I think they should be an OCC instead of an interdiction to trade derivatives, then we can talk about best practices.







http://www.reuters.com/article/idUSLDE60J0WF20100120

Soft commodities

There is no doubt that the price of sugar is going up, with India likely to import an additional 1 million metric tons of sugar. That's without doubt a price mover.
How can derivatives be used to hedge against the price increase?
SELL A PUT OPTION and BUY a CALL OPTION.

Some articles on the subject:
http://online.wsj.com/article/SB126320161403624393.html

http://in.reuters.com/article/domesticNews/idINDEL39639220090217