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Thursday, February 17, 2011

get dope using the buck.

and Significant sums of Cash...


...my past experience extracted from this world, my experience has also enabled the world to take significant sums of cash away from me.




Skill


is learning and replicating what activity generated desired results, and replicating such activity slightly better each time.


Always continuing to pace oneself.








However, experience is no substitute for skill.



Skill is also using past significant failures as opportunities to consider significant re-construction efforts.


I have seen numerous charts along my journey, and find them an important part of my investment method.


My observation 


This is of some influential indicators effecting the US equity market price action over the last several years.



The following where studied: 
  • the Australian, China Index's, 
  • the Commodity ETF, and 
  • US Dollar ETF. 

This revealed some problematic findings.


My research found that the Australian equities led China, which led the US equity markets. This finding still remains, however, China and Commodities, I have found move closer now. The US Currency absolutely impacts commodities as it should.



What role does the US Currency have upon the effects of equities?


A decrease in the US domestic currency would be expected to eventually compress domestic operating margins and ultimately negatively effect earnings longer term.


In the short term,
operating margins, and earnings are overstated as sales increase due to prices, rather than quantity or productivity.


To the contrary,
an increase in the US domestic currency would be expected to inherently have the opposite effects.



My video discussion provides an observation 


on the historical global market results. I find that any shock to a system is very valuable because it shows how a system performs in extreme circumstance.




Yes this profession is tough, but so is anything worthwhile. 


It is my hope that this presentation provides you with additional considerations, and ultimately creates more overall clarity.



All I ask



If you found this information of value, in return, share this blog with others you believe will benefit and that you share your comments. 






History rhymes,


-Eli

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