Daily Investment Tips

One ETF that is designed to take a short position on the US dollar is the PowerShares DB U.S. Dollar Bearish Fund.

PowerShares DB U.S. Dollar Bearish Fund is issued and managed by Deutsche Bank and Amvescap unit PowerShares Capital Management LLC.

PowerShares DB U.S. Dollar Bearish Fund tracks Deutsche Bank U.S. Dollar Index Futures Index — Excess Return, which follows the movement of the U.S. dollar against a basket of six major currencies: the euro, the Japanese yen, the British pound, the Canadian dollar, the Swedish krona and the Swiss franc.

PowerShares DB U.S. Dollar Bearish Fund makes profit when the U.S. dollar falls.

written by Constantine Njeru \\ tags: British Pound, Canadian Dollar, Capital Management Llc, Currencies, Deutsche Bank, Dollar Index, Excess Return, Futures Index, Index Futures, Japanese Yen, Powershares, Short Position, Swedish Krona, Swiss Franc, Us Dollar

Over at Guardian UK Newspaper there is a fascinating piece about Giant American Bank JP Morgan Chase.

According to the Guardian article, JP Morgan is sitting on what is estimated to be 3.3bn ounce short position in silver. And someone has devised a plan on how to punish JP Morgan. If you are all for robbing the rich then keep reading.

Max Keiser Silver Campaign

The author of the article, Max Keiser is leading a campaign to buy Silver so that JP Morgan Chase may go burst. They even have done mathematics of how this will work.

We posited that if 5% of the world’s population each bought a one-ounce coin of silver, JP Morgan would be forced to cover their shorts – an estimated $1.5tn liability – against their market capital of $150bn, and the company would therefore go bankrupt.

The Coming JP Morgan Chase Bankruptcy: Bail Out

You might dismiss this campaign as pure lunacy but it seems to be working,

Right now, silver eagle sales for the month of November hit an all-time record high and the availability of silver on a wholesale level is drying up. The most important indicator is the price itself – holding just under a 30-year high. With each uptick JP Morgan gets closer to going bust or requiring a bailout.

Max even made a close that would make any sales manager proud,

If anyone is interested in helping to crash JP Morgan, buy silver. In the end, it’s about transferring wealth back to the people from where it came.

written by Constantine Njeru \\ tags: Bailout, Bankruptcy, Bust, Eagle Sales, Giant, Guardian Article, Guardian Uk, Jp Morgan, Jp Morgan Chase, Kaiser, Lunacy, Mathematics, Max Keiser, Month Of November, Morgan Silver, Ounce, Short Position, Silver Eagle, Time Record, Uptick, Wholesale Level

George Soros is known as “the Man Who Broke the Bank of England” after he made a reported $1 billion during the 1992 UK currency crisis. He bet against the British pound and won big.

I came across a quote by George Soros, that seems to give an easy answer as to how the famous speculator makes money in a turbulent world.

The financial markets generally are unpredictable. So that one has to have different scenarios… The idea that you can actually predict what’s going to happen contradicts my way of looking at the market.

George Soros

It is clear what George Soros does, He evaluates multiple scenarios and takes position in each scenario. As the market unfolds he lets profits run on the correct scenario and cuts losses on wrong scenarios. At a single time he might be long on a position but still take a short position on the same.

To play this scenario game you need to use risk management tools such as options, futures and short sales.  For this kind of trading to be successful an investor needs to have sufficient capital to buy those tools.

written by Constantine Njeru \\ tags: 1 Billion, Bank Of England, British Pound, Currency Crisis, Economic Predictions, Financial Markets, George Soros, Investor, Losses, Money, Options Futures, Profits, Quote, Risk Management Tools, Scenario Game, Scenarios, Short Position, Speculator, Turbulent World, Uk Currency