From Jack Schwager’s Market Wizards: October 1987 was a devastating month for most investors as the world stock markets witnessed a collapse that rivaled 1929. That same month, the Tudor Futures Fund, managed by Paul Tudor Jones, registered an incredible 62 percent return. Jones has always been a maverick trader. His trading style is unique […]
Do you ever get that feeling that a certain trade will be huge? That you should size up on it and go for the jugular? You can’t exactly describe why this trade is the “one”, but you can definitely feel it. This feeling is what we call intuition.
The following is an excerpt from an email sent to one of our Macro Ops Hub members. It’s a cursory look at how we apply the Macro Ops’ Trade Identification Formula (MOTIF) to markets. The MOTIF series was originally introduced to our Operators through the Vault — a section of the Hub that contains a […]
The “greatest money making machine in history”, a man with “Jim Roger’s analytical ability, George Soros’ trading ability, and the stomach of a riverboat gambler” is how fund manager Scott Bessent describes Stanley Druckenmiller. That’s high praise, but if you look at Druckenmiller’s track record, you’ll find it’s well deserved.
Last week Tyler linked up with our friend Cris Sheridan at Financial Sense to discuss the peak in the bond market. The last time they talked in July, Tyler explained the asymmetric risks bond investors were facing with yields hitting a lower bound. We saw the result of that asymmetry over the last month as […]
It probably didn’t take long after becoming a trader to stumble upon options. Brokerages and websites all over the internet are constantly pitching these complex financial derivatives, claiming things like “defined risk” and “100% returns a month”. But these advertisements only end up luring novices into a game that creates losses rather than stunning returns.
It’s interesting how quickly the consensus around what a Trump presidency means for markets went from “it’d be an unequivocal disaster” to “his policies will bring forth a new and lasting economic expansion.”
Rarely do we investors get a market that we know is overvalued and that approaches such clearly defined limits as the bond market now. That is because there is a limit as to how negative bond yields can go. Their expected returns relative to their risks are especially bad. If interest rates rise just a […]