Asset Allocation May 2009

Just in case you wondered… This is my current asset allocation (excluding real estate and debt) in this current troubled times. Just a tiny increase in gold – buying gifts for my wife )): Cash or equivalent:            88% Equity (EM):                     7% Gold:                              ...

Asset Allocation

Just in case you wondered… This is my current asset allocation (excluding real estate and debt) in this current troubled times: Cash or equivalent:            90% Equity (EM):                     7% Gold:                               3% Currency-wise: USD:                                ...

Volkswagen and the free market

Here’s something interesting. At an intraday high of 1,005€ (it was trading around 200 just a few days ago), Volkswagen has been for a few minutes the biggest company in the world for market capitalization. A whopping 380bn$. For a car-maker!!! Why this? Pretty simple. The whole hedge fund world was short VW because it was considered overvalued, and long other car-makers. Then Porsche (which already owned...

The 1.8 trillion dollars bailout

CNBC has made an interesting analysis on the US government bailout of the financial crisis. It’s not just 700bn$, more like 1.8trn$. Quick laundry list: 700bn$ recently announced plan to buy assets from bank 150bn$ MBS purchase by Fannie and Freddie 85bn$ for AIG 90bn$ in repayment to JPM for Lehman 200bn$ for Freddie and Fannie 300bn$ for FHA 200bn$ of currently outstanding loans Fed’s issued to...