Category: Money Tips Date: 2007-08-05
Baosteel Warrants finally listed on the first day of its price limit-sealed, Baosteel's stock is no longer being followed up, because the current stock market, almost no one for next year's steel market has very optimistic expectations. Baosteel warrant holders if you want to preserve the capital, then the price of Baosteel must be before September next year, up to 6 dollars more than this, from a probability point of view is unlikely significant. However, a similar situation in the domestic A-share market have occurred, like the time a number of junk stocks soaring. We also do not know whether the price of Baosteel's warrants, such as the current row of the right will be similar to the price dropped to zero, but we know that this type of speculation may also exist for a long time, and this type of speculation is actually only a simple The "Greater Fool" game.
Last month, a man named Simon, a world-class mathematicians to Wall Street caused quite a stir. Simon is a professor of mathematics, in Massachusetts Institute of Technology, Harvard University, teaches, he found his name in the geometric theorem is an important tool in theoretical physics. However, in the hedge fund arena, Simon's achievements are no less significant. He runs a hedge fund called the revival of science and technology management company, its flagship hedge fund "Medallion" the scale of 5 billion U.S. dollars, from 1998 to date, the annual average return rate of 34%. This income is audited and does not include charges, allegedly the United States over the same period more than 1,000 hedge funds in proceeds only to the highest. However, if the scale is too large hedge funds in general tends to reduce their earnings, so Simon's only flagship fund the annual dividend is not reinvest, but this time Simon claimed that he would issue a scale of up to 100 billion dollars, called "Renaissance institution equity fund" in the new fund, but the scale of 100 billion is clearly too large, roughly equivalent to the total assets of hedge funds is currently 10% of Wall Street's skepticism. Simon's investment was made through a computer program in a variety of markets, short-term trading, no one knows the details of his investments, even Medallion fund investors who do not know. This story from last month's Asian Wall Street Journal, where reference is only to say that the speculation is very high technological content, and as the value of speculative investments, is a tight system, including concepts, processes, methods and results, but its content and value of investment is totally different, their earnings are mainly from the market or other market participants mistakes. Example, Soros specializes in foreign exchange markets, errors, and through the financial leverage to impact the profitability of his mainly from the mistakes of the central bank, which unlike the value of Buffett's investment in such companies, their profits primarily from listed companies .
As the capital markets, there are very many mistakes, so with the increase in derivatives, there are many opportunities in places, speculative method is also very rich. Although the domestic securities market derivatives are not many, but there are still many opportunities for speculation, such as limit-in fact is the belief that the use of death squads rose inertia can generate a profit opportunity, and if the broad market, as extremely pessimistic, as in May of this year, the in terms of the speculators might be a good opportunity; through the lever to enlarge such as Baoshan Iron and Steel purchase warrants, the proceeds of space is not only large, a relatively high probability of success. Unfortunately the mainstream of domestic speculative approach may still "Fool", applied to Ge in the film "A World Without Thieves" Lane 1 lines, "Fool" this speculative approach may be all the speculation there is no technical method of the most content of a.
