We offer regular reviews of topics that are important to asset owners and managers who trade capital markets. Our opinions and insights are freely shared.

Cara's Commentary & Community Chat, Tues., Feb. 10, 2009

[7:43am ET] Interesting word, leadership. I have talked about it in the market; it's been mentioned here a lot with respect to corporate CEO's and politicians. Without leadership, all the work at planning, organizing, controlling and directing, go to waste. Wealth is lost. Spending serves one master, inflation.

But, insert a quality leader, and the army is able to march forward. Goals and objectives are accomplished. Wealth is built. Economic conditions stabilize.

Cara's Commentary & Community Chat, Tues., Feb. 10, 2009

Cara's Commentary & Community Chat, Mon., Feb. 9, 2009

[6:00am ET] Who would have taken the International Monetary Fund for being an early adopter of the 'D' word? Following a speech in Kuala Lumpur, Malaysia, IMF CEO Dominique Strauss-Kahn is reported in the Wall St. Journal as telling reporters that the US, Western Europe and Japan are "already in depression," and that the IMF could slash its global growth forecasts further. The "worst cannot be ruled out," he said. These comments were far more pessimistic than forecasts released by the IMF as recently Jan. 28, said the WSJ.

http://en.wikipedia.org/wiki/IMF

Cara's Commentary & Community Chat, Mon., Feb. 9, 2009

Cara's Commentary & Community Chat, Fri., Feb. 6, 2009

[7:27am ET] The Bernard Madoff scandal, not the current state of macro-economics, has brought America and the world to a crossroads. The question is simple: do we take the ethical high road or do we stay the present course? I ask you to read this document from beginning to end and ask yourself if we really have any option:
http://www.deepcapture.com/bernard-madoff-the-mafia-and-the-friends-of-m...

Cara's Commentary & Community Chat, Fri., Feb. 6, 2009

Cara's Commentary & Community Chat, Thurs., Feb. 5, 2009

[7:17am ET] The Bernard Madoff scandal will focus the eyes of the world on the reality of Wall Street, the same one I have been writing about here for almost five years.

The performance audit of the Madoff Fund was done only by Madoff's brother,

Cara's Commentary & Community Chat, Thurs., Feb. 5, 2009

Cara's Commentary & Community Chat, Wed., Feb. 4, 2009

[7:27am ET] I have finally run out of patience with Microsoft, the company and its policies. Enough is enough. I am as you know an addicted user of computers. Mine was manufactured by one of the world

Cara's Commentary & Community Chat, Wed., Feb. 4, 2009

Cara's Commentary & Community Chat, Tues., Feb. 3, 2009

[8:00am ET] I have been so busy, I just picked up this blog entry from kaimu from Monday morning:

ALOHA!!

I am now freezing my ass off in Dallas, headed to San Diego then back to Hawaii about mid Feb ...

Even though I was under the weather, with a bad cold, almost the whole time I was in the Bahamas I had a great time there and was able to do some business, even marketing orchids!

My thanks to Bill & Co ... for an insiders look at the BAHAMAS ... Very enlightening! I enjoyed the "mates" and the "piss up" at the CRICKET CLUB!! No "cricket" !!

Cara's Commentary & Community Chat, Tues., Feb. 3, 2009

Cara’s Commentary & Community Chat, Tues., Feb. 3, 2009

[8:00am ET] I have been so busy, I just picked up this blog entry from kaimu from Monday morning:

ALOHA!!

I am now freezing my ass off in Dallas, headed to San Diego then back to Hawaii about mid Feb ...

Even though I was under the weather, with a bad cold, almost the whole time I was in the Bahamas I had a great time there and was able to do some business, even marketing orchids!

My thanks to Bill & Co ... for an insiders look at the BAHAMAS ... Very enlightening! I enjoyed the "mates" and the "piss up" at the CRICKET CLUB!! No "cricket" !!

Cara’s Commentary & Community Chat, Tues., Feb. 3, 2009

Cara's Commentary & Community Chat, Mon., Feb. 2, 2009

[8:28am ET] I think maybe the guys in yellow won. I know that most of the people at the party were not watching one of the TVs, including the giant screen we were standing beside in the courtyard where I live. Most of the talk was of Liverpool and Arsenal and Man U. But, then, as I remarked to my friends, we were rather an eclectic group, from Ireland, Scotland, England, India, Germany, Spain, Holland, Colombia, somewhere in Africa, the US and of course Canada. I am sure I missed two or three countries in that small group of about a dozen of us.

Cara's Commentary & Community Chat, Mon., Feb. 2, 2009

Cara’s Commentary & Community Chat, Fri., Jan. 30, 2009

[8:05am ET] Humungous Bank & Broker (HB&B) has paid out a total of $18.4 billion in bonuses for 2008, the sixth largest payout ever, in a year where they took clients to the largest financial losses in modern history, and also shortly after the ex-Treasury Secretary

Cara’s Commentary & Community Chat, Fri., Jan. 30, 2009

Cara's Commentary & Community Chat, Fri., Jan. 30, 2009

[8:05am ET] Humungous Bank & Broker (HB&B) has paid out a total of $18.4 billion in bonuses for 2008, the sixth largest payout ever, in a year where they took clients to the largest financial losses in modern history, and also shortly after the ex-Treasury Secretary

Cara's Commentary & Community Chat, Fri., Jan. 30, 2009

Cara's Commentary & Community Chat, Thurs., Jan. 29, 2009

[7:30am ET] The story of the Fairfield Greenwich Group (see link) points to the truth of what I have been saying from the start of my blogging: the financial services industry has for years misrepresented their respective roles in serving the client.
http://finance.yahoo.com/news/Managers-luxe-life-on-the-apf-14190784.html

Cara's Commentary & Community Chat, Thurs., Jan. 29, 2009

Cara's Commentary & Community Chat, Wed., Jan. 28, 2009

What I have learned over 50+ years of trading

Change is constant. Markets are competitive. For the owners and managers of assets, only students of the market survive. We must learn to adapt to change. That involves the continuous study of  ​social and political change, macro-economic data and business conditions, international trade and taxation, commodity prices, interest rates and market liquidity, emerging markets, industry life cycles, corporate balance sheets and operating fundamentals, investor sentiment, trading research methodologies, and so forth. Needing to be a specialist at just one thing is a myth. Multiple interests and skills are required.

We all have it in our power to develop sufficient expertise to trade as well as most professionals. However, like anything in life, the experience needed to survive and prosper takes time and should not be rushed.

How to trade, survive and prosper

Through our publications, we offer a practical guide that incorporates an holistic approach to trading capital markets. Before we should buy any security, we need to understand the market and how to trade.

We believe we should buy only what we need and to buy the highest quality. The basic choices are Growth, Value or Yield. You should ignore any other marketing label put by to the sell-side. Understand that large-, mid- and small-cap companies or companies that operate in different regions of the world is simply your preference.

To ascertain the highest quality for Growth, Value and Yield requires a study of corporate fundamentals, comparing performance of one company to all other companies. In our proprietary database of almost 5,000 companies, we input the data of about 15 datapoints from Bloomberg and Thomson Reuters and then calculate weekly composite scores for Growth, Value and Yield, which we then rank from best to worst. For the most part, we are interested only in the highest quality companies. For order entry timing optimization, we study the market price & volume data for each of these companies from about 50 datapoints we capture from various sources on a daily and perhaps intra-daily basis.

Each portfolio is created and managed to meet different investor requirements; however, the trading methodology we use is consistent with what we know from experience works.

To guide our readers, we produce a Cara 100 list that balances Growth, Value and Yield considerations. This freely accessible list of what we consider to be quality companies is updated at the end of each quarter year, based on relative fundamentals, giving a range of large-, mid- and small-cap companies.