Friday, March 02, 2007

Preliminary Report

Initial figures show an almost $11k gain in net worth to $388k and well ahead of the target of $382k for this month and an investment performance of 2.05% mostly due to the gain in the Aussie Dollar as well as trading gains, my mutual funds were up just a little. There will be a full and detailed report with the final figures after we get back from Florida. Today a hedge trade went wrong when the market swooned this morning but I managed to come out with a profit on both sides of the trade.... eventually.

The main driver of the fall in the stock market seems to be the rise in the Japanese Yen. People who have borrowed or shorted low interest Yen to use the proceeds to invest elsewhere are covering their positions as the Yen rises and liquidating other investments elsewhere. The media calls this "unwinding carry trades". The fall in the Chinese market and the softening signs in the US economy also are playing a role of course.

Also, check out the latest 30s and 40s carnival.

3 comments:

Anonymous said...

congrats on a fantastic month!

Super Saver said...

mOOm,

The market is now extremely ugly. On Friday, I sold out of all postions that I purchased this quarter. I think we are in for at least a 2 month correction.

Good call on your part.

mOOm said...

For traders the market isn't ugly - traders like volatile markets and it doesn't matter if they go up or down. Still, each trading style has a desired amount of volatility :) For long term investors volatility also gives good buy prices. Short-term investors are the ones in trouble...