Financial Review

Barbarians at the Gate With Toothpaste Play in new window | Download (Duration: 13:15 — 7.6MB)Subscribe: Apple Podcasts | Android | RSS…Dow record close. IMF won’t get fooled again. Tax reform version 3.0. EPA fights for whale oil. P&G proxy vote fails. Walmart battles Amazon, but profits before innovation. US & South Korea military hack. Deloitte hack is getting worse. NoCal’s worst wildfire. Financial Review by Sinclair Noe for 10-10-2017


Wednesday, June 19, 2016 – Don’t Fight It

Don’t Fight It by Sinclair Noe DOW – 206 = 15,112 SPX – 22 = 1628NAS – 38 = 344310 YR YLD + .13 = 2.31%OIL – .52 = 98.15GOLD – 17.00 = 1352.30SILV – .34 = 21.45 One of the best known adages in the financial world is “Don’t fight the Fed”. Marty Zweig is credited with that sage wisdom. Zweig was a professor of finance, and a financial analyst; he went on to become a hedge fund manager and he wrote a newsletter. He famously bet that the market would go down in 1987, and by October of that year he was short the market and made a big profit while most other money managers were getting clobbered. “Don’t fight the Fed”; that meant, according to Zweig’s theory, that if interest rates were going down, stocks would go up, and vice versa. He also claimed the way to make money was to be risk-averse, rather than taking chances on the upside. He said he was a big poker player while at Wharton, but had stopped playing when he became a money manager because he hated losing. In addition to “Don’t fight the Fed”, Zweig is credited with the adage, “Don’t fight the tape”; in other words, the market will have the last word, and complaining that the market is wrong is an excellent way to lose money. Zweig had a third rule: “Never relax”. Today the Federal Reserve concluded their Federal Open Market Committee meeting; they issued a …