How to manage your risk by using a pairs strategy November 19, 2012 MARKETS are fraught with uncertainty: the fiscal cliff, conflict in the Middle East, the Eurozone crisis, and slowing growth in China are just some of the problems that could potentially derail equity markets. Therefore, traders must use risk management techniques to mitigate their risk exposure. But if investors suddenly sought safety by moving their money [...]
The Tipster | Taking candy from a baby November 19, 2012 TRADING shares in Mothercare has been child’s play over the last 12 months, as they have surged over 120 per cent. Chief executive Simon Calver, who was appointed in April, has implemented a successful turnaround strategy, appeasing the concerns of worried investors. The retailer delivers its interim statement on Thursday, and traders will want to [...]
Seasonal bonus for shrewd traders November 19, 2012 CHRISTMAS is close and there is a lot of Bah Humbug in the air. The FTSE 100 index is 5 per cent off its recent highs. The governor of the Bank of England Sir Mervyn King said that the economy may contract again. As inflation squeezes real wages, and public spending faces more cuts, it [...]
Analyst picks for 20 November 2012 November 19, 2012 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Long dollar-yen, short Aussie-New Zealand dollar. Expertise: Fundamental and technical analysis. Average time frame of trades: 1 day to 1 week. Last week’s trades (short Aussie-dollar, long sterling-yen, long dollar-yen) worked well. However, heavy fundamentals and the Thanksgiving holiday make for confusing times ahead. To curb risk, I will [...]
Compliance has emerged as a growth industry in the UK November 19, 2012 RECENT scandals in the banking sector have led to some discernible changes. Firms have come under the regulatory microscope, resulting in large fines and reputational damage. More regulation and increased investor pressure to ensure adherence to these new rules has led to enhanced emphasis on the role and responsibilities of the compliance team. And now [...]
Bank minutes to show appetite for QE as public borrowing is revealed November 18, 2012 MINUTES from the Bank of England’s November monetary policy committee (MPC) meeting will this week give further clues about the appetite for further quantitative easing (QE) and the extent to which the recent rise in inflation has affected the committee’s decision making. The release is due out on Wednesday, along with public sector net borrowing [...]
So-called fiscal cliff could lead to opportunity November 18, 2012 THE 1987 crash. The Y2K bug. The debt ceiling debacle of 2011. All these events, in the end, turned out to be buying opportunities for stocks. So will the fiscal cliff, some investors say as they watch favourite stocks tumble during the political give-and-take happening in Washington. The first round of talks aimed at avoiding [...]
Guard yourself against the dangers of biting inflation November 18, 2012 INFLATION is a silent thief that can rob the value of your investment capital. The consumer price index rose by 2.7 per cent in the year to October, up from 2.2 per cent in September. Though some argue that it will come down again, it has overshot the Bank of England’s 2 per cent target [...]
Why going for gold could be a wise investment choice November 18, 2012 GLOBAL gold demand may be on the decline – down 11 per cent, or 138.9 tonnes from the third quarter of 2011. But it has had a series of highs since the economic downturn. Gold is the classic “store of value”. It’s traditionally seen as a safe haven in troubled times, providing a hedge against [...]
