Ok I could be wrong, but if I am why are the Chinese buying so much while they could be buying more super safe us treasuries? Could it be they know we're a sinking ship and want to buy something they know will soar in value when they dump our treasuries??? Again follow the money not the sheep who tell you everything is fine
They sell gold jewelry. I don't think their business really revolves around gold prices too much, am I right?
Yes that is true. I was trying to see what they sell, but their website is worthless. Chinese companies suck.
With dividends reinvested...that is the big key. There are also simple tweaks to investing that can greatly increase long term returns to. Long term investing isn't that complicated as long as people are patient, disciplined, and have a strong stomach for the downturns.
You guys are both amateurs, reinvesting dividends is for scrubs. I sold $4.50 puts for iag that expire next week for .25 if I get the shares I'm in at $4.25! If I don't I made over 5% in 2 weeks or so. If I get the shares I'll sell $5 covered calls for November and make a total 15% in november or lower my cost basis even more. Robbie just stop you're an amateur trader get at me when you can hang with someone amplifying returns selling puts to acquire shares and then selling calls to lower his cost basis and profit while holding shares. Sure I could just buy spy and reinvest dividends but I'm too busy returning 40%+ annually to handle your amateur strategy. Again rice builds leaders not followers like yourself
How did all those work out for you? Great call on the swing long. Did you cover that INFY before earnings?
Yea you're right.. but the point is Chinese buy a lot of gold and gold jewlery.. now with money to spend their revenues will rise and share price should be back in line with book value eventually
If you're looking at Chinese stocks, watch FENG. Dropped earlier this week when the market tanked, but it should be back to new highs this week as long as the government gets this shutdown/debt settled.
Why would it go back to book value? What do they include when arriving at their book value? Chinese companies are notoriously bad with their questionable accounting.
and you're notoriously bad on calling shorts and long positions but we don't hold it against you! Chinese companies don't have the same oversight at US companies but overall the big players are fine to invest in. Care to share more short ideas of yours o wise one?
Smaller cap Chinese companies are fine to trade they just shouldn't be invested in for the most part. The only short I have on is the ABX short and I added in and bought some 17 strike puts that expire Friday. We will see how that works out. Other than that not really looking short. We've had a couple of tremors in the market with Syria and then the govt shutdown and both have been met by solid buyers on the dips. Additionally, we've seen gold continue its slide and now treasuries got hit late in the day on the stories of a govt resolution. I've been cautious leading up til now but things are just simply strong at this point. We will see how earnings go, but I expect the market will be making new highs and probably rallying into the end of the year.
I am kicking myself because I started following this thread last fall when a bunch of Chinese companies were being kicked around here, players like BIDU, DANG, EDU, SOHU, SINA, YOKU, etc. Now they all exploded, and I'm left feeling for scraps wondering if the Chinese market has peaked or if there are any companies left with good growth potential. Any nominees among those companies, or new ones I haven't mentioned?
This strategy will work until it doesn't. There is no free lunch with options. Let's say IAG goes to $10. Sure you made $0.25, but you could have made a lot more if you had just bought it. Let's say you get the shares at $4.25 and sell the $5 calls. Once again, if it goes up to $10 you aren't going to be very happy that you sold at $5. You are essentially trading upside for income and even that income isn't guaranteed if IAG goes down after you get assigned on the puts. This strategy will not outperform the market in the long term. If your goal were to generate income at a lower risk then this strategy might be advisable. But it sounds like you are trying to make quick bucks. The money to be made in options is in the bid/ask for market makers.
Is it worth it to speculate in Tower Group (TWGP)? Huge drop-off over the past two months from $20 to $4.
