Daily Investment Tips

In an interview with Yahoo! Finance’s new daily trading and investing show, “Breakout,” Jim Rogers hinted he may buy U.S dollars.

Internationally renowned investor Jim Rogers told “Breakout” hosts Matt Nesto and Jeff Macke that he’s considering buying the U.S. dollar now, but with a catch.

“We’re at a moment of truth for the dollar,” he says.

Rogers, who is currently long the yen, notes that the dollar has been declining despite events that would normally trigger a global flight to safety. Source: Yahoo Finance Breakout Show.

James Rogers, is an American investor and author based in Singapore. He is chairman of Rogers Holdings and Beeland Interests, Inc. He was the co-founder of the Quantum Fund with George Soros and creator of the Rogers International Commodities Index.

written by Constantine Njeru \\ tags: American Investor, Beeland Interests Inc, Bets, Co Founder, Dollar Currency, George Soros, Global Flight, Hosts, International Commodities Index, James Rogers, Jeff Macke, Jim Rogers, Matt Nesto, Moment Of Truth, Quantum Fund, Rogers International Commodities Index, Safety Source, Yahoo Finance, Yen Dollar, Yen Notes

Their is a quote that says “nothing is new, everything that happens today has happened before.” This is true in stock market and even in housing market.

Robert J. Shiller a professor of economics and finance at Yale and co-founder and chief economist of MacroMarkets LLC has posted an article in NYtimes detailing the history of real estate bubbles across USA.

The first real estate bubble happened in 1830s and burst in 1837

The second real estate bubble happened in 1850s and burst in 1857

The third real estate bubble happened in 1970s and burst in the early 1980s

The fourth has been the recent bubble that started in 1990s and burst in 2007

It is clear real estate bubbles have been few and far between. To read the full article visit New York Times Real Estate.

written by Constantine Njeru \\ tags: 1830s, 1850s, 1970s, 1980s, 1990s, Bubbles, Burst, Chief Economist, Co Founder, Economics, Finance, First Real Estate, Housing Market, Llc, New York Times, Nytimes, Real Estate Bubble, Stock Market, Times Real Estate, Yale

John Meriwether is a good example of why many investors never learn from their mistakes. Investors delude themselves thinking “This time its different”

John Meriwether was the co-founder of Long Term Capital Management, together with two future Nobel Prize winners, Myron Scholes and Robert C. Merton. With this two brainys on board it seemed this hedge fund was a sure bet.

The fund got off to a flying start, it raised $1.01 billion from high net worth individuals. It delivered annualized returns of over 40% (after fees) in its first years. Nothing could go wrong.

But when the Russian crisis hit in 1998, it lost $4.6 billion in less than four months. With mounting losses and a bailout from the FED the fund was closed in early 2000.

You would have thought John Meriwether had learnt from his mistakes. But immediately after LTCM closed shop Meriwether launched JWM Partners. A fund that would continue many of LTCM’s strategies. He managed to convince investors to invest in him by promising them this time he was going to use less leverage.

Whoever said lightening doesnt strike twice was wrong, just like the Russian Financial crisis of 1998 killed LTCM, the 2007 Credit crisis struck JWM partners. JWM Partners LLC was hit with 44% loss from September 2007 to February 2009 in its one of its fund. As such, JWM Hedge Fund was shut down in July 2009.

Never buy into the idea “This time it is different.”

written by Constantine Njeru \\ tags: Bailout, Bet, Co Founder, Credit Crisis, First Years, Four Months, Hedge Fund, High Net Worth Individuals, Investors, John Meriwether, Jwm Partners Llc, Leverage, Long Term Capital, Long Term Capital Management, Losses, Myron Scholes, Nobel Prize Winners, Robert C Merton, Russian Crisis, Russian Financial Crisis