Search found 679 matches

by Lauretta
Wed Sep 19, 2018 8:46 am
Forum: Investing - Help with Personal Investments
Topic: What can go wrong in shorting Tilray, and can EU investors short it (and how?)
Replies: 21
Views: 613

Re: What can go wrong in shorting Tilray, and can EU investors short it (and how?)

As others have pointed out, shorting is risky because you can be right about Tilray crashing in the longer run and lose all your money and more in the short run doing it. If you want to gamble, I'd take the other side and just buy a small amount, say equivalent to 0.1% of your overall portfolio, an...
by Lauretta
Wed Sep 19, 2018 8:17 am
Forum: Investing - Help with Personal Investments
Topic: What can go wrong in shorting Tilray, and can EU investors short it (and how?)
Replies: 21
Views: 613

Re: What can go wrong in shorting Tilray, and can EU investors short it (and how?)

To prove the insanity, because TLRY was highlighted on Mad Money last night it is currently trading at 230 in premarket. Previous close 155. The stock moved from 180 at 7am up to 240 by 830 AM todat. If you liked the short yesterday you will love it today! yes :D It's interesting that you are a day...
by Lauretta
Wed Sep 19, 2018 7:11 am
Forum: Investing - Help with Personal Investments
Topic: What can go wrong in shorting Tilray, and can EU investors short it (and how?)
Replies: 21
Views: 613

Re: What can go wrong in shorting Tilray, and can EU investors short it (and how?)

... You are, in effect, short volatility. They have more capital than you do, they are long volatility in effect Volatility can go both ways, so if the stock is volatile and has a big drop in value, I win. So I am not sure what you meant by that... Probability theory, gambler's ruin, St. Petersburg...
by Lauretta
Wed Sep 19, 2018 6:37 am
Forum: Investing - Help with Personal Investments
Topic: What can go wrong in shorting Tilray, and can EU investors short it (and how?)
Replies: 21
Views: 613

Re: What can go wrong in shorting Tilray, and can EU investors short it (and how?)

Tilray in particular is extremely, extremely expensive to borrow now. Tilray especially has outsize fees for short sellers — those wishing to borrow the stock to short it were paying 450% to 600% Monday. How can that be right??? Apparently a typical basket of cannabis stocks overall would cost 20% ...
by Lauretta
Wed Sep 19, 2018 5:45 am
Forum: Investing - Help with Personal Investments
Topic: What can go wrong in shorting Tilray, and can EU investors short it (and how?)
Replies: 21
Views: 613

Re: What can go wrong in shorting Tilray, and can EU investors short it (and how?)

If the share price goes up then you have to cover the loss in your account as per your margin agreement. Right. So this is the reason for the controversy following Elon Musk tweet that Tesla had secured funding for going private I guess(?) Short sellers were damaged when the price went up (even tho...
by Lauretta
Wed Sep 19, 2018 5:35 am
Forum: Investing - Help with Personal Investments
Topic: What can go wrong in shorting Tilray, and can EU investors short it (and how?)
Replies: 21
Views: 613

Re: What can go wrong in shorting Tilray, and can EU investors short it (and how?)

I have read about the cannabis stock Tilray, which has 28M$ in sales and a market cap of over 14B$; its price has gone up fivefold in six months and I've seen that even people who bought it 6 months ago are now shorting it. With this market cap at 500 times sales the valuations seems absurd. So I t...
by Lauretta
Wed Sep 19, 2018 5:27 am
Forum: Investing - Help with Personal Investments
Topic: What can go wrong in shorting Tilray, and can EU investors short it (and how?)
Replies: 21
Views: 613

Re: What can go wrong in shorting Tilray, and can EU investors short it (and how?)

The biggest risk is that it can keep going up. There is no limit to your potential losses if the stock keeps going up. I've never shorted a stock but I believe that if it does go up, you can't just wait it out, you will need to cover the losses in the meantime (Valuethinker has covered this well). ...
by Lauretta
Wed Sep 19, 2018 4:55 am
Forum: Investing - Help with Personal Investments
Topic: What can go wrong in shorting Tilray, and can EU investors short it (and how?)
Replies: 21
Views: 613

What can go wrong in shorting Tilray, and can EU investors short it (and how?)

I have read about the cannabis stock Tilray, which has 28M$ in sales and a market cap of over 14B$; its price has gone up fivefold in six months and I've seen that even people who bought it 6 months ago are now shorting it. With this market cap at 500 times sales the valuations seems absurd. So I th...
by Lauretta
Thu Sep 13, 2018 12:46 pm
Forum: Investing - Theory, News & General
Topic: Isn't cap weighting less diversified than equal weighting?
Replies: 72
Views: 2901

Re: Isn't cap weighting less diversified than equal weighting?

Imagine you have 2 stocks, ticker SALT and WATER. If both are efficiently prized so that neither is more likely to outperform the other (in terms of risk-adjusted expected return), I would 'bet' 50% of my money on each; even though 96.5% of total bets are put on water. What determines my allocation...
by Lauretta
Thu Sep 13, 2018 12:41 pm
Forum: Investing - Theory, News & General
Topic: Isn't cap weighting less diversified than equal weighting?
Replies: 72
Views: 2901

Re: Isn't cap weighting less diversified than equal weighting?

Seawater is 96.5% water and 3.5% dissolved salts. If you fill an aquarium with seawater, you will be filling it mostly with water. Would anybody describe that as "highly concentrated in water?" It isn't, it's simply natural seawater. Market cap weighting is the natural composition of the stock mark...
by Lauretta
Thu Sep 13, 2018 9:54 am
Forum: Investing - Theory, News & General
Topic: Isn't cap weighting less diversified than equal weighting?
Replies: 72
Views: 2901

Re: Isn't cap weighting less diversified than equal weighting?

Yes by definition market cap weighting is highly concentrated in the large stocks. No, "by definition" it is no such thing. Indeed, market cap weighting, by definition, puts the most dollars in the same stocks that the market puts the most dollars into . However, to call that a "concentration" is s...
by Lauretta
Thu Sep 13, 2018 7:40 am
Forum: Investing - Theory, News & General
Topic: Isn't cap weighting less diversified than equal weighting?
Replies: 72
Views: 2901

Re: Isn't cap weighting less diversified than equal weighting?

Yes by definition market cap weighting is highly concentrated in the large stocks.
by Lauretta
Thu Sep 13, 2018 7:20 am
Forum: Investing - Theory, News & General
Topic: Does it make sense to invest in individual stocks (like Kanye West) if you stick to what you know?
Replies: 110
Views: 5516

Re: Does it make sense to invest in individual stocks (like Kanye West) if you stick to what you know?

I think that one problem is, at least in my case, that when I work I do not think as an investor about the things I come into contact with. For example I am an academic and I've co-authored more than a hundred scientific papers in vaious journals Although I am very familiar with how journals work, i...
by Lauretta
Sat Aug 11, 2018 4:26 am
Forum: Investing - Theory, News & General
Topic: Turkey/Turkish Stocks down 32% - approaching 2008 levels
Replies: 96
Views: 10214

Re: Turkey/Turkish Stocks down 32% - approaching 2008 levels

Turkey is such a small portion of the Total International Stock Index Fund, yet the fund lost nearly 2% today. I'm ready to seriously rethink the international stock portion (33%) of my equity allocation. And this isn't about market timing. It seems to be an recurring pattern. Something bad happens...
by Lauretta
Thu Aug 09, 2018 7:26 am
Forum: Investing - Help with Personal Investments
Topic: Does the accountancy currency of a fund have an impact on how much you are taxed?
Replies: 2
Views: 160

Re: Does the accountancy currency of a fund have an impact on how much you are taxed?

A lot depends on the tax laws in "your" country. For me I know that most of the taxes are levied on the euro amount with a few notable exceptions where the trading currency is used. thanks for the feedback. Yes I imagined so; I tried to ask my broker but they don't give information on taxes, I gues...
by Lauretta
Thu Aug 09, 2018 3:47 am
Forum: Investing - Help with Personal Investments
Topic: Does the accountancy currency of a fund have an impact on how much you are taxed?
Replies: 2
Views: 160

Does the accountancy currency of a fund have an impact on how much you are taxed?

Suppose you are a EU investor who invests in an S&P500 fund (but the question is applicable to any investor in any country). You have the choice between fund A labelled in USD and fund B labelled in Euros (the funds hold exactly the same assets, only the accountancy currency changes). After time t, ...
by Lauretta
Mon Jul 30, 2018 2:02 am
Forum: Investing - Theory, News & General
Topic: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?
Replies: 45
Views: 3804

Re: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?

you feel you do not deserve investing success if all you do is index to global markets with a market cap weighting? Financial markets, you feel, is like physics, we should be able to divine the underlying physical principles? You are quite right in the first sentence of the quote above. I don't thi...
by Lauretta
Sat Jul 28, 2018 10:44 am
Forum: Investing - Theory, News & General
Topic: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?
Replies: 45
Views: 3804

Re: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?

Because I'm not interested in increasing expenses that comes with the trading involved with other weighting schemes. Yes I agree with this point. In fact I do use market cap weigthted index funds; I must confess that the reason is that when I started investing I just relied on the theories of famou...
by Lauretta
Sat Jul 28, 2018 9:01 am
Forum: Investing - Theory, News & General
Topic: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?
Replies: 45
Views: 3804

Re: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?

... I have seen other convincing arguments against market cap weighting, such as this : In only two years since the S&P 500 went to a capitalization-weighting composition in 1988, was a top ten weighted stock at the end of the previous year a top ten performer in the following year (1995 (Microsoft...
by Lauretta
Sat Jul 28, 2018 5:52 am
Forum: Investing - Theory, News & General
Topic: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?
Replies: 45
Views: 3804

Re: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?

Nobody is advocating over weighting the big stocks. Or at least, the Bogleheads investment philosophy doesn't advocate it. (Certainly there exists a school of thought that favors a portfolio consisting of a small number of individual blue-chip stocks rather than indexing. I do not belong to that sc...
by Lauretta
Thu Jul 26, 2018 11:41 am
Forum: Investing - Theory, News & General
Topic: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?
Replies: 45
Views: 3804

Re: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?

https://imgur.com/4FXF7tI.png I hadn't paid any attention. Now that I'm paying attention, it doesn't seem to have mattered much to my cap-weighted portfolio. Lauretta, how much was your personal portfolio affected by the decline in Fiat stock? With regard to equal weighting, I don't think I've ever...
by Lauretta
Thu Jul 26, 2018 11:33 am
Forum: Investing - Theory, News & General
Topic: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?
Replies: 45
Views: 3804

Re: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?

You are throwing away a lot of diversification benefit. I think you are still trying to outsmart Mr Market, and that has a long term poor record. If you can do that then you should not be posting here, you should be behind the desk at some hedge fund implementing your trading strategy. Well accordi...
by Lauretta
Thu Jul 26, 2018 10:39 am
Forum: Investing - Theory, News & General
Topic: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?
Replies: 45
Views: 3804

Re: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?

David Jay wrote:
Thu Jul 26, 2018 10:22 am
The effect of equal weight is selling growth companies and buying legacy companies (like Fiat - your equal weight fund would have purchased Fiat yesterday).
Well that would have been a smart move: today Fiat is up 3.5% :D
by Lauretta
Thu Jul 26, 2018 9:29 am
Forum: Investing - Theory, News & General
Topic: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?
Replies: 45
Views: 3804

Re: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?

You are throwing away a lot of diversification benefit. I think you are still trying to outsmart Mr Market, and that has a long term poor record. If you can do that then you should not be posting here, you should be behind the desk at some hedge fund implementing your trading strategy. Well accordi...
by Lauretta
Thu Jul 26, 2018 4:35 am
Forum: Investing - Theory, News & General
Topic: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?
Replies: 45
Views: 3804

Re: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?

The loss of diversification of an equal weighting of all countries is huge. Mind bogglingly huge. No one has found a better solution than market cap weighting. Tax and transactions costs kill other strategies even if you could show that they lead to a better risk-return tradeoff (and no one has sho...
by Lauretta
Thu Jul 26, 2018 2:03 am
Forum: Investing - Theory, News & General
Topic: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?
Replies: 45
Views: 3804

Re: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?

what if you want to equal-weight each nation? iShares ETFs are the answer perhaps, since iShares seems to have a mission to have an ETF for every nation in the world -- sometimes two, one for large-cap and one for small-cap, but alas no equal-weights yet. An ideal index for equal-weighters would be...
by Lauretta
Thu Jul 26, 2018 12:47 am
Forum: Investing - Theory, News & General
Topic: FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?
Replies: 45
Views: 3804

FCA stock drops 15% following Marchionne's death: another argument against market cap weighting?

In a previous post I expressed my doubts about market cap weighted indexing https://www.bogleheads.org/forum/viewtopic.php?f=10&t=248220 and explained why to me equal weighting seems a more logical approach. Since writing that post, I have seen other convincing arguments against market cap weighting...
by Lauretta
Sat Jun 09, 2018 1:26 pm
Forum: Personal Consumer Issues
Topic: daughter wants a college transfer?
Replies: 65
Views: 5560

Re: daughter wants a college transfer?

Cornell is a great school, but has notorious issues with grade deflation . If she is really interested in med school, transfer to a different (cheaper?) school. A “C” in Cornell organic chemistry (which might be an “A” elsewhere) won’t cut it. Things have progressed so far in academia that we talk ...
by Lauretta
Sat Jun 09, 2018 11:10 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle on Fox Business Channel Friday June 8
Replies: 65
Views: 5870

Re: Jack Bogle on Fox Business Channel Friday June 8

Another 5 minutes from the interview. https://m.youtube.com/watch?v=RC__VrsfdpM at 1:42 he says 'there will be opportunities - we have seen them in the last 25 yrs - to get out and get back in'. I am not sure whether he is advocating market timing, perhaps based on extreme valuations (as he elsewhe...
by Lauretta
Sat Jun 09, 2018 1:24 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle on Fox Business Channel Friday June 8
Replies: 65
Views: 5870

Re: Jack Bogle on Fox Business Channel Friday June 8

Another 5 minutes from the interview. https://m.youtube.com/watch?v=RC__VrsfdpM at 1:42 he says 'there will be opportunities - we have seen them in the last 25 yrs - to get out and get back in'. I am not sure whether he is advocating market timing, perhaps based on extreme valuations (as he elsewhe...
by Lauretta
Sat Jun 09, 2018 1:16 am
Forum: Investing - Help with Personal Investments
Topic: [EU] Looking for the European Boglehead way to go: Findings & Discussion
Replies: 5
Views: 710

Re: [EU] Looking for the European Boglehead way to go: Findings & Discussion

RME wrote:
Fri Jun 08, 2018 6:05 pm
The European Boglehead community is on the search for the perfect country asset allocation for stocks and bonds.
Can you explain what you mean by a
perfect
asset allocation?
by Lauretta
Tue Jun 05, 2018 3:18 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Financial Illiteracy’s High Cost
Replies: 30
Views: 4003

Re: Larry Swedroe: Financial Illiteracy’s High Cost

This finding: There was no evidence that, overall, households with higher financial literacy choose riskier portfolios. Instead, their risk exposure varies systematically with market conditions, allocating more to risky assets when they have higher expected returns. A 1% increase in the expected exc...
by Lauretta
Sun Jun 03, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: What's wrong with this critique of indexing?
Replies: 124
Views: 9476

Re: What's wrong with this critique of indexing?

Can you please point out at which point the following reasoning is wrong? 1) If one believes in the EMH and in common asset pricing models, then one accepts the idea that all information about firms in the stock market is baked into their current prices, so that for every stock you should expect th...
by Lauretta
Sat Jun 02, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: What's wrong with this critique of indexing?
Replies: 124
Views: 9476

Re: What's wrong with this critique of indexing?

If I have "$5 billion" worth of News Corporation stock and I actually try to sell it, there may not be anybody who wants to buy it at that price. In order to clear $5 billion on the deal, I may need to find someone willing to pay $5 billion for a number of shares of stock that I thought was worth, ...
by Lauretta
Thu May 31, 2018 2:47 pm
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6090

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

The more difficult issue would be redenominating Italian government debt into New Lira. Not sure what the legal position would be. Effectively that would be an exchange of c EUR 2 trillion of bonds for bonds paying in New Lira. Holders would resist. Yes I think there are several legal issues, appar...
by Lauretta
Thu May 31, 2018 8:42 am
Forum: Investing - Theory, News & General
Topic: Should financials stocks be included when implementing a quantitative value strategy?
Replies: 11
Views: 734

Re: Should financials stocks be included when implementing a quantitative value strategy?

There is more developed research on what value might mean, results even with their own 5-factor model, profitability/quality factors that give value a different context now especially with respect to thinking value as a proxy for distress risk, etc. on the subject of the quality factor, something I...
by Lauretta
Thu May 31, 2018 7:26 am
Forum: Investing - Theory, News & General
Topic: Should financials stocks be included when implementing a quantitative value strategy?
Replies: 11
Views: 734

Re: Should financials stocks be included when implementing a quantitative value strategy?

I'm not a believer in the idea that value style strategies offer anything special. That being said, if you are one of the followers of Fama-French style "Value" they explicitly said: ...We exclude financial firms because the high leverage that is normal for these firms probably does not have the sa...
by Lauretta
Thu May 31, 2018 7:10 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6090

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Being completely selfish, as a frequent traveler to Europe I hope the Eurozone expands to cut down on my foreign currency collection. :twisted: Having travelled in pre-Euro Europe, it was fun to bring Italian banknotes with lots of zeroes on them to give my siblings / cousins as gifts upon my retur...
by Lauretta
Thu May 31, 2018 5:52 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6090

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Valuethinker wrote:
Thu May 31, 2018 5:28 am
But Lisbon is definitely the new hipster heaven.
Was there at new year's eve. Loved the place; beautiful architecture, particularly the manuelino style, light and fluid. :o
I was told that house prices have already gone up a lot in Lisbon too - but I didn't really look into that.
by Lauretta
Thu May 31, 2018 4:19 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6090

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

If I were Italian, I'd be moving some money outside the country right now, one way or the other. Someone said on an Italian forum that apparently if you move money to a German bank and the euro ceases to exist, you will not get automatically German marks - rather, you would get the currency of your...
by Lauretta
Wed May 30, 2018 3:39 pm
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6090

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

leaves open the question of what currency risk is being hedged if the Euro were to break up. Perhaps the returns would then be hedged against a new Euro for Germany and other core member states, and this would almost certainly appreciate against the new Lira, Drachma... Precisely, that's what I hav...
by Lauretta
Tue May 29, 2018 7:30 pm
Forum: Investing - Theory, News & General
Topic: Should financials stocks be included when implementing a quantitative value strategy?
Replies: 11
Views: 734

Re: Should financials stocks be included when implementing a quantitative value strategy?

Fama includes financials in his academic factors, but they are excluded in DFA funds. I assume it's because someone ran the data and growth financials didn't beat growth value stocks in backtesting. Yes and I've seen several academic papers on value investing that stated that they exclude financial...
by Lauretta
Tue May 29, 2018 4:39 pm
Forum: Investing - Theory, News & General
Topic: What's wrong with this critique of indexing?
Replies: 124
Views: 9476

Re: What's wrong with this critique of indexing?

The market capitalization of a stock is not a constant. Market cap is constantly being created and destroyed in transactions, although in small increments. If I have "$5 billion" worth of News Corporation stock and I actually try to sell it, there may not be anybody who wants to buy it at that pric...
by Lauretta
Tue May 29, 2018 3:47 pm
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6090

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Are us treasury bonds not available in Europe? I never understood why people would buy 0 or negative yield bonds when there were equally safe bonds for sale in the us with 10x the yield. Because shopkeepers in Europe don't price things in dollars. Why does that matter? I didn't say why don't they j...
by Lauretta
Tue May 29, 2018 3:39 pm
Forum: Investing - Theory, News & General
Topic: What's wrong with this critique of indexing?
Replies: 124
Views: 9476

Re: What's wrong with this critique of indexing?

(ThrustVectoring beat me to it while I was composing a psot. Here's the same point made in a different way). Let's make a set of wildly unrealistic simplifying assumptions. Suppose there are only two stocks in the stock market, Apple and News Corporation. Let's say their market capitalizations are ...
by Lauretta
Tue May 29, 2018 3:01 pm
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6090

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Laurette, I'm from Belgium. I sold my shares in the iShares etf IEGA yesterday and couldn't be happier I bought a global bond etf Hedged to euro. I suggest you do the same or open up am account with your broker to buy dollars or us treasuries Hedged to euro. Yes, there are a couple of global bond E...
by Lauretta
Tue May 29, 2018 12:39 pm
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6090

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Hi Lauretta, I'm also a bit skeptical about the Eurozone's long-term stability. So many moving parts but only one currency is going to create lots of shear force. Being from Austria, this also would directly affect me. I take it this way: having a stock-heavy globally diversified portfolio gives me...
by Lauretta
Tue May 29, 2018 10:38 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6090

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

My take is that markets can do unexpected things. If you think German Bonds are a riskless bet with potentially big upside for Italian investors, chances are that others are noticing that too, particularly the very large institutions. My guess is that this is all built into the price of German Bond...
by Lauretta
Tue May 29, 2018 10:33 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6090

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

My take is that markets can do unexpected things. If you think German Bonds are a riskless bet with potentially big upside for Italian investors, chances are that others are noticing that too, particularly the very large institutions. My guess is that this is all built into the price of German Bond...