Lighthouse Investment Management

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Month: September 2011

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  • Improving LIMTI

    Alexander Gloy

    The efficacy of both technical and fundamental analysis is disputed by efficient-market hypothesis (which states that stock market prices are essentially unpredictable). If stock prices were unpredictable, my clients would be wasting money. “Technical analysis” tries identify patterns that help determine future prices. You might ask “how can a formula know what happens in the future”? That is a…

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  • The Fed, ZIRP and the French boomerang

    Alexander Gloy

    Ben Bernanke promised to sit, like an elephant, on short-term interest rates for another two years  – at least. What were US Money Market Funds (MMF) going to do? US Treasury yields are 0.09% for 12 months, 0.02% for 6 and negative 0.01% for 3 months:   Source: Bloomberg 9/23/2011 You can’t deliver negative yields…

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  • Zerohedge: Bundesbank ready to pull the Euro’s Ripcord?

    Alexander Gloy

    Bundesbank ready to pull the Euro’s Ripcord?

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  • Bundesbank ready to pull the Euro’s ripcord

    Alexander Gloy

    Something odd is happening. Germans are leaving the ECB. First Weber, then Stark. Why would senior German officials withdraw from the ECB just at a time when they should seek greater influence? One explanation: to avoid having a conflict of interest once Germany re-instates the Bundesbank as the leading central bank of Europe. Currently, Germany…

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  • Get your half-yearly dose of hopium from the IMF

    Alexander Gloy

    With the publication of the half-yearly “World Economic Outlook” by the IMF it’s time again to look confidently into the bright economic future – or is it? Let’s examine how the IMF wizards fared compared to their own (past) forecasts: Source: IMF World Economic Outlook, Table 2.2 (Selected European Economies); October 2010 (page 75), April…

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  • Zerohedge: Switzerland Launches Referendum To Stop SNB Lunacy, Save Swiss Gold

    Alexander Gloy

    Click here to read our article as it appeared on Zerohedge blog News service Ransquawk also picked up the post:

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  • Save the Swiss Gold

    Alexander Gloy

    According to an article in Swiss newspaper NZZ (Neue Zuercher Zeitung) the SVP party (Swiss People’s Party) launched a referendum to “protect” the 1,000 tonnes of gold owned by the Swiss National Bank (SNB). Their aim is to: make it unconstitutional to sell gold force the SNB to hold 20% of its assets in gold…

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  • Why China really needs to step up its gold purchases

    Alexander Gloy

    Central banks own most of the world’s gold (30,562 tonnes compared to 2,158 tonnes in ETF owned by private investors). Why? Our entire monetary system is based on fiat currencies (the paper is not worth anything – the value stems from the trust someone else will accept this paper for the value printed on it).…

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