Future Chinese Stock Market Problems are being Created Now by its Banking Industry

16 May, 2007 - Here’s a story I’ve been meaning to write about but just haven’t had the time. The People’s Bank of China last month increased their Reserve Ratio Requirement (RRR) 50 basis points to 11% in an attempt to reduce inflationary measures. Although I don’t know if China actually enforces this RRR (in the U.S. the RRR is 10% but in reality, legislation has been weakened to such an extent in the U.S. over the past decade, that many banks maintain a true RRR of less than 1%), the move, even if symbolic, is important Read more …

2 comments May 16th, 2007

Never Let Hope or Emotion Influence Your Options Decisions

16 May, 2007 -

Case in point. With my GM puts, although they were up at one point 35% (my target was a 50% gain), I ended up selling out at a 40% loss when I got stopped out (normally I’ll set my stop-losses on options anywhere from 25% to 40%). Had in not been for private equity firm Cerberus acquiring DaimlerChrysler, I believe I would have hit my 50% gain Read more …

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