Saturday, December 10, 2011

Cassandra's Predictions: Financial Tips to Pick Off Spoils from 1%

If you believe in psychic powers and/or future forecasting, you ignore Cassandra at your peril.

1) Mario Draghi, head of the ECB, will never allow "Club Med", etc. debt to be monetized.  If you haven't already, buy credit default swaps on eurozone sovereign bonds.  Even Merkel wouldn't dare prevent all holders from qualifying and collecting.

2) Facebook pre-IPO stock at artificially bargain-basement prices has already been allocated in the secondary market (or through some other opaque mechanism).  Short it for a month after the IPO.

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