Thursday 31 March 2011

Stressed Out? Slack Off

"THE WALLSTREET JOURNAL

Are slackers more adept at handling work-life stress than type-A go-getters?
A new study finds that may be the case. Those who cope with work-family conflict by becoming busier and looking for more resources to solve problems – type-A multitaskers — actually experience more stress and strain, says the study in theJournal of Applied Psychology.  The researchers studied 193 people who were all combining work and college studies with family duties.
But in a finding that may baffle busy-bee readers, people who avoid problems – those we might call slackers in a different context — who withdraw and, say, lie down and take a nap instead of tackling dilemmas right away, actually do better with life conflict, and seem to have more energy, says the study.
Avoiding problems for the short term, or “disengaging from stressful roles temporarily, may actually help,” the write the authors Tracy Hecht at Concordia University and Julie M. McCarthy at the University of Toronto.
In another interesting (and counterintuitive) finding, the researchers observed that people who seek out other people to provide emotional support also reported more stress. “It may be that their extra efforts take even more time away from other roles, thus increasing their tendency to experience conflicts,” according to the authors."
LINK

Wednesday 23 March 2011

Caring for Your Introvert

"THE ATLANTIC

The habits and needs of a little-understood group



Do you know someone who needs hours alone every day? Who loves quiet conversations about feelings or ideas, and can give a dynamite presentation to a big audience, but seems awkward in groups and maladroit at small talk? Who has to be dragged to parties and then needs the rest of the day to recuperate? Who growls or scowls or grunts or winces when accosted with pleasantries by people who are just trying to be nice?

If so, do you tell this person he is "too serious," or ask if he is okay? Regard him as aloof, arrogant, rude? Redouble your efforts to draw him out?

If you answered yes to these questions, chances are that you have an introvert on your hands—and that you aren't caring for him properly. Science has learned a good deal in recent years about the habits and requirements of introverts. It has even learned, by means of brain scans, that introverts process information differently from other people (I am not making this up). If you are behind the curve on this important matter, be reassured that you are not alone. Introverts may be common, but they are also among the most misunderstood and aggrieved groups in America, possibly the world.

I know. My name is Jonathan, and I am an introvert.

Oh, for years I denied it. After all, I have good social skills. I am not morose or misanthropic. Usually. I am far from shy. I love long conversations that explore intimate thoughts or passionate interests. But at last I have self-identified and come out to my friends and colleagues. In doing so, I have found myself liberated from any number of damaging misconceptions and stereotypes. Now I am here to tell you what you need to know in order to respond sensitively and supportively to your own introverted family members, friends, and colleagues. Remember, someone you know, respect, and interact with every day is an introvert, and you are probably driving this person nuts. It pays to learn the warning signs.

What is introversion? In its modern sense, the concept goes back to the 1920s and the psychologist Carl Jung. Today it is a mainstay of personality tests, including the widely used Myers-Briggs Type Indicator. Introverts are not necessarily shy. Shy people are anxious or frightened or self-excoriating in social settings; introverts generally are not. Introverts are also not misanthropic, though some of us do go along with Sartre as far as to say "Hell is other people at breakfast." Rather, introverts are people who find other people tiring.

Extroverts are energized by people, and wilt or fade when alone. They often seem bored by themselves, in both senses of the expression. Leave an extrovert alone for two minutes and he will reach for his cell phone. In contrast, after an hour or two of being socially "on," we introverts need to turn off and recharge. My own formula is roughly two hours alone for every hour of socializing. This isn't antisocial. It isn't a sign of depression. It does not call for medication. For introverts, to be alone with our thoughts is as restorative as sleeping, as nourishing as eating. Our motto: "I'm okay, you're okay—in small doses."

How many people are introverts? I performed exhaustive research on this question, in the form of a quick Google search. The answer: About 25 percent. Or: Just under half. Or—my favorite—"a minority in the regular population but a majority in the gifted population."

Are introverts misunderstood? Wildly. That, it appears, is our lot in life. "It is very difficult for an extrovert to understand an introvert," write the education experts Jill D. Burruss and Lisa Kaenzig. (They are also the source of the quotation in the previous paragraph.) Extroverts are easy for introverts to understand, because extroverts spend so much of their time working out who they are in voluble, and frequently inescapable, interaction with other people. They are as inscrutable as puppy dogs. But the street does not run both ways. Extroverts have little or no grasp of introversion. They assume that company, especially their own, is always welcome. They cannot imagine why someone would need to be alone; indeed, they often take umbrage at the suggestion. As often as I have tried to explain the matter to extroverts, I have never sensed that any of them really understood. They listen for a moment and then go back to barking and yipping.

Are introverts oppressed? I would have to say so. For one thing, extroverts are overrepresented in politics, a profession in which only the garrulous are really comfortable. Look at George W. Bush. Look at Bill Clinton. They seem to come fully to life only around other people. To think of the few introverts who did rise to the top in politics—Calvin Coolidge, Richard Nixon—is merely to drive home the point. With the possible exception of Ronald Reagan, whose fabled aloofness and privateness were probably signs of a deep introverted streak (many actors, I've read, are introverts, and many introverts, when socializing, feel like actors), introverts are not considered "naturals" in politics.

Extroverts therefore dominate public life. This is a pity. If we introverts ran the world, it would no doubt be a calmer, saner, more peaceful sort of place. As Coolidge is supposed to have said, "Don't you know that four fifths of all our troubles in this life would disappear if we would just sit down and keep still?" (He is also supposed to have said, "If you don't say anything, you won't be called on to repeat it." The only thing a true introvert dislikes more than talking about himself is repeating himself.)

With their endless appetite for talk and attention, extroverts also dominate social life, so they tend to set expectations. In our extrovertist society, being outgoing is considered normal and therefore desirable, a mark of happiness, confidence, leadership. Extroverts are seen as bighearted, vibrant, warm, empathic. "People person" is a compliment. Introverts are described with words like "guarded," "loner," "reserved," "taciturn," "self-contained," "private"—narrow, ungenerous words, words that suggest emotional parsimony and smallness of personality. Female introverts, I suspect, must suffer especially. In certain circles, particularly in the Midwest, a man can still sometimes get away with being what they used to call a strong and silent type; introverted women, lacking that alternative, are even more likely than men to be perceived as timid, withdrawn, haughty.

Are introverts arrogant? Hardly. I suppose this common misconception has to do with our being more intelligent, more reflective, more independent, more level-headed, more refined, and more sensitive than extroverts. Also, it is probably due to our lack of small talk, a lack that extroverts often mistake for disdain. We tend to think before talking, whereas extroverts tend to think by talking, which is why their meetings never last less than six hours. "Introverts," writes a perceptive fellow named Thomas P. Crouser, in an online review of a recent book called Why Should Extroverts Make All the Money? (I'm not making that up, either), "are driven to distraction by the semi-internal dialogue extroverts tend to conduct. Introverts don't outwardly complain, instead roll their eyes and silently curse the darkness." Just so.

The worst of it is that extroverts have no idea of the torment they put us through. Sometimes, as we gasp for air amid the fog of their 98-percent-content-free talk, we wonder if extroverts even bother to listen to themselves. Still, we endure stoically, because the etiquette books—written, no doubt, by extroverts—regard declining to banter as rude and gaps in conversation as awkward. We can only dream that someday, when our condition is more widely understood, when perhaps an Introverts' Rights movement has blossomed and borne fruit, it will not be impolite to say "I'm an introvert. You are a wonderful person and I like you. But now please shush."

How can I let the introvert in my life know that I support him and respect his choice? First, recognize that it's not a choice. It's not a lifestyle. It's an orientation.

Second, when you see an introvert lost in thought, don't say "What's the matter?" or "Are you all right?"

Third, don't say anything else, either."

LINK

Tuesday 22 March 2011

Why I Am Never Going to Own a Home Again

From hedge fund owner James Altucher who writes an excellent blog:


"Many people have said to me in the past month, “I’m going to buy a home.” Or, “What do you think of the idea of me buying a home?” I like the second batch of people. They are my friends and it seems like they are sincerely asking for my advice. And I’m going to give it to them. Whether they meant it or not.





I have some stories about owning a home. One of them is here: “What It Feels Like to be Rich” where I describe my complete path into utter depravity and insanity. The other one is still too personal. Its filled with about as much pain as I can fit onto a page. Oh, I have a third one also from when I was growing up. But I don’t want to upset anyone in my family so I’ll leave it out. Oh, I have a fourth story that I just forgot about until this very second. But enough about me. Lets get right to it.
There are many reasons to not buy a home: [By the way, I also put this in the category ofAdvice I want to tell my daughters, including my other article: 10 reasons not to send your kids to college.]
Financial:
A)     Cash Gone. You have to write a big fat check for a downpayment. “But its an investment,” you might say to me. Historically this isn’t true. Housing returned 0.4% per year from from 1890 to 2004. And that’s just housing prices. It forgets all the other stuff I’m going to mention below. Suffice to say, when you write that check, you’re never going to see that money again. Because even when you sell the house later you’re just going to take that money and put it into another downpayment. So if you buy a $400,000 home, just say goodbye to $100,000 that you worked hard for. You can put a little sign on the front lawn: “$100,000 R.I.P.”
B)      Closing costs. I forget what they were the last two times I bought a house. But it was about another 2-3% out the window.  Lawyers, title insurance, moving costs, antidepressant medicine. It adds up. 2-3%.
C)      Maintenance. No matter what, you’re going to fix things. Lots of things. In the lifespan of your house, everything is going to break. Thrice. Get down on your hands and knees and fix it! And then open up your checkbook again. Spend some more money. I rent. My dishwasher doesn’t work. I call the landlord and he fixes it. Or I buy a new one and deduct it from my rent. And some guy from Sears comes and installs it. I do nothing. The Sears repairman and my landlord work for me.
D)     Taxes. There’s this myth that you can deduct mortgage payment interest from your taxes. Whatever. That’s a microscopic dot on your tax returns. Whats worse is the taxes you pay. So your kids can get a great education. Whatever.
E)      You’re trapped. Lets spell out very clearly why the myth of homeownership became religion in the United States. Its because corporations didn’t want their employees to have many job choices. So they encouraged them to own homes. So they can’t move away and get new jobs. Job salaries is a function of supply and demand. If you can’t move, then your supply of jobs  is low. You can’t argue the reverse, since new adults are always competing with you.
F)      Ugly. Saying “my house is an investment” forgets the fact that a house has all the qualities of the ugliest type of investment:
  1. Illiquidity. You can’t cash out whenever you want.
  2. High leverage. You have to borrow a lot of money in most cases.
  3. No diversification. For most people, a house is by far the largest part of their portfolio and greatly exceeds the 10% of net worth that any other investment should be.
Personal reasons to not own a house. [Also, Follow me on twitter. ]
A)     Trapped, part 2. Some people like to have roots. But I like things to change every once in awhile. Starting March, 2009 I was renting an apartment directly across the street from the New York Stock Exchange. It was fun. I’d look out the window and see Wall Street. How exciting! Before that I lived in The Chelsea Hotel with Chubb Rock. Last year we decided to relax and move a little north. Now I look out the window and see the Hudson River. And its quiet and I can walk along the river in the morning with no noise. It took us two weeks to pick a place and move. No hassles. I like to live a hassle-free life.
B)      Walls. You can’t change the walls when you rent. A lot of people seem to want to tear down walls. Or paint them. Sometimes when you rent you can’t do these things. Well, make sure you have a landlord that lets you tear down walls. There must be some ancient evolutionary tic that makes us want to tear down walls or put nails in them or paint them. I don’t get it. I like the walls to stay right where they are.
C)      Rent. People will argue that the price of the mortgage, maintenance taxes, etc is all baked into the price of rent. Sometimes this is true. But usually not.
D)     Psychology. Look at your personal reasons for wanting to own. Do you feel like you can’t accomplish something in life until you own a house? Do you feel like its part of getting married and “Settling down”, i.e. creating a nest for your future children? For you, is it a part of becoming an adult. Is this what your parents taught you? Examine the real reasons you want to own and make sure they are coming from a good spot in your heart.
E)      Your time. Do you really want to spend all that time working on your house? Is this where your time is best spent towards creating a happy and fulfilled life for yourself?
F)      Choices. I feel when I rent I always have the choice to leave. To live wherever  in the world I want whenever I want.  Adventure becomes a possibility even if I never take advantage of it.
G)     Stress. For me (not for everyone) owning a home equals stress. I saw what my parents went through at their worst moments owning a home. I saw what I and others went through in the Internet bust when I first owned a home. I saw what people went through in 2008. People were killing themselves. I don’t like that sort of stress. This is how I deal with stress.
H)     Cash is king. I like cash in the bank. I like having access to it.  I don’t like it all tied up in one illiquid investment.  I want to fill a bathtub with all the dollar bills I would’ve used as a downpayment on a house. I want to bathe in that bathtub. I’m going to do that later today in fact.
By the way, this is going to sound like a contradiction: but I think housing is a great investment right now.  I think housing prices have gone down far enough and I can list the reasons why housing as an abstract investment concept is going to go higher from here. But I don’t like to write about investing on this blog. Suffice to say there are many stocks you can buy, with leverage if you want to take advantage of the rise in housing. But I’m never going to buy a home again. And sit there in the middle of the night thinking, “why the hell did I do this to myself again.”
LINK

Don’t Call Me, I Won’t Call You

"THE NEW YORK TIMES
NOBODY calls me anymore — and that’s just fine. With the exception of immediate family members, who mostly phone to discuss medical symptoms and arrange child care, and the Roundabout Theaterfund-raising team, which takes a diabolical delight in phoning me every few weeks at precisely the moment I am tucking in my children, people just don’t call.

It’s at the point where when the phone does ring — and it’s not my mom, dad, husband or baby sitter — my first thought is: “What’s happened? What’s wrong?” My second thought is: “Isn’t it weird to just call like that? Out of the blue? With no e-mailed warning?”
I don’t think it’s just me. Sure, teenagers gave up the phone call eons ago. But I’m a long way away from my teenage years, back when the key rite of passage was getting a phone in your bedroom or (cue Molly Ringwald gasp) a line of your own.
In the last five years, full-fledged adults have seemingly given up the telephone — land line, mobile, voice mail and all. According to Nielsen Media, even on cellphones, voice spending has been trending downward, with text spending expected to surpass it within three years."
 “I literally never use the phone,” Jonathan Adler, the interior designer, told me. (Alas, by phone, but it had to be.) “Sometimes I call my mother on the way to work because she’ll be happy to chitty chat. But I just can’t think of anyone else who’d want to talk to me.” Then again, he doesn’t want to be called, either. “I’ve learned not to press ‘ignore’ on my cellphone because then people know that you’re there.”
“I remember when I was growing up, the rule was, ‘Don’t call anyone after 10 p.m.,’ ” Mr. Adler said. “Now the rule is, ‘Don’t call anyone. Ever.’ ”
Phone calls are rude. Intrusive. Awkward. “Thank you for noticing something that millions of people have failed to notice since the invention of the telephone until just now,” Judith Martin, a k a Miss Manners, said by way of opening our phone conversation. “I’ve been hammering away at this for decades. The telephone has a very rude propensity to interrupt people.”
Though the beast has been somewhat tamed by voice mail and caller ID, the phone caller still insists, Ms. Martin explained, “that we should drop whatever we’re doing and listen to me.”
Continued...

Wednesday 9 March 2011

Fitness Guru Jack LaLanne dies at 96

"HUFFINGTON POST
Jack LaLanne died on Sunday, at the age of 96. He was a mentor to me, as he was to many. He was a great man, more so than most people realize.
His wife of 51 years, Elaine LaLanne, knew. "I have not only lost my husband and a great American icon," she said, "but the best friend and most loving partner anyone could ever hope for."
When it comes to exercise and health, the name Jack LaLanne has long been virtually synonymous with fitness. Jack literally inspired millions to live a healthful life. But Jack LaLanne didn't start out as a model of health. Far from it.
When he was a teenager, he dropped out of school for a year because he was so ill. Shy and withdrawn, he avoided being with people. He had pimples and boils, was thin, weak, and sickly, and wore a back brace. "I also had blinding headaches every day," Jack recalled. "I wanted to escape my body because I could hardly stand the pain. My life appeared hopeless."
Then he met the pioneer nutritionist Paul Bragg, who preached a new way of living, and to his credit, Jack listened. Bragg asked Jack, "What do you eat for breakfast, lunch, and dinner?" 
"Cakes, pies, and ice cream," Jack answered truthfully.
"Jack," Bragg replied, "you're a walking garbage can."
Even in his 90s, Jack was a living testimony to the value of regular exercise and a healthful lifestyle. He was for many years a vegan (no meat, dairy, or eggs), but in his later years, though he still ate no dairy products -- "anything that comes from a cow, I don't eat" -- he occasionally ate egg whites and wild fish. Mostly, he ate organic raw fruits and vegetables. And he took vitamins.
His vibrant message was that it's never too late to get in shape. "Those who begin to exercise regularly, and replace white flour, sugar, and devitalized foods with live, organic, natural foods, begin to feel better immediately," he said. He emphasized that it takes both nutrition and exercise. "There are so many health nuts out there who eat nothing but natural foods but they don't exercise and they look terrible. Then there are other people who exercise like a son-of-a-gun but eat a lot of junk ... Exercise is king. Nutrition is queen. Put them together and you've got a kingdom!"
Even at the age of 95, Jack LaLanne was still a model of fitness and vitality. Full of life and spirit, his one-minute "Jack LaLanne Tip of the Day" pieces were still being shown on seventy television stations. As energetic and flamboyant as ever, he was still speaking all over the world, inspiring people to help themselves to a better life, physically, mentally, and morally. "
Full article

The Billionaire Who Is Planning His 125th Birthday

"THE NEW YORK TIMES
...I never have anything go wrong,” he said later. “Never have a backache. Never have a headache. Never have anything else.” This would make him a lucky man no matter his age. Because he is 87, it makes him an unusually robust specimen, which is what he must be if he is to defy the odds (and maybe even the gods) and live as long as he intends to. He wants to reach 125, and sees no reason he can’t, provided that he continues eating the way he has for the last quarter century: with a methodical, messianic correctness that he believes can, and will, ward off major disease and minor ailment alike.
So that sore throat wasn’t just an irritant. It was a challenge to the whole gut-centered worldview on which his bid for extreme longevity rests. “I went back in my mind: what am I not eating enough of?” he told me. Definitely not fruits and vegetables: he crams as many as 20 of them, including pulverized banana peels and the ground-up rinds of oranges, into the smoothies he drinks two to three times a day, to keep his body brimming with fiber and vitamins. Probably not protein: he eats plenty of seafood, egg whites, beans and nuts to compensate for his avoidance of dairy, red meat and poultry, which are consigned to a list of forbidden foods that also includes alcohol, sugar and salt."
Continued...

Thursday 3 March 2011

Gain, IKON Rulings Reveal Forex Broker House Advantage


TRADERDAILY

"Forex trading is being marketed like financial malt liquor to retail investors, many of whom are clueless about how distorted the playing field is for currency trading.
Players can’t look to a major exchange to see the best bid and ask. Instead, investors must rely on their broker to provide an honest price at a fair spread. Given the speed of markets these days and the added complexity of trading pairs in a market dominated by well-capitalized behemoths, it’s no surprise that even well-informed investors lose their shirts and everything else.
Recent National Futures Association decisions involving Gain Capital and IKON Global Markets show how brokers can engineer another kind of house advantage — the illegal kind."


Continued...

Libya is united in popular revolution – please don't intervene

"THE GUARDIAN
We welcome a no-fly zone, but the blood of Libya's dead will be wasted if the west curses our uprising with failed intervention
"Kiss my mum goodbye for me, and tell her that her son died a hero," said my friend Ahmed, 26, to the first person who rushed to his side after he was shot in a Tripoli street.
Two days later, my friend Ahmed died in the hospital. Just like that.
That tall, handsome, funny, witty, intellectual young man is no more. No longer will he answer my phone calls. Time will stand still on his Facebook account for ever.
An hour before he was shot, I called Ahmed. He sounded at his best. He told me that he was in Green Square in the heart of Tripoli, and that we were free. Then bad telephone connections meant I couldn't reach him again for two whole days.
That was when I called Ahmed's best friend, who broke the devastating news to me. They were about to bury him, he told me. I rushed to the cemetery, and arrived there right after the burial. I found some of our friends. They pointed at a spot on the ground telling me it was where Ahmed's body lay. We all hugged each other and just cried our hearts out.
This is the kind of story you get out of Tripoli these days. Hundreds of them, perhaps even thousands. The kind of stories that you could never imagine on your doorstep.
...So as the calls for foreign intervention grow, I'd like to send a message to western leaders: Obama, Cameron, Sarkozy. This is a priceless opportunity that has fallen into your laps, it's a chance for you to improve your image in the eyes of Arabs and Muslims. Don't mess it up. All your previous programmes to bring the east and the west closer have failed, and some of them have made things even worse. Don't start something you cannot finish, don't turn a people's pure revolution into some curse that will befall everyone. Don't waste the blood that my friend Ahmed spilt for me.

Let us just live as neighbours on the same planet. Who knows, may be I as your neighbour might one day show up at your doorstep to happily shake your hand."



Full article

Wednesday 2 March 2011

Kate Adie: The Gaddafi I knew

"THE GUARDIAN
Gaddafi's Libya ran on farce mingled with fear, recalls the BBC reporter he nearly ran down in a small, battered Peugeot

Nothing was ever straightforward dealing with Gaddafi.
There was little to do in revolutionary Libya in the evenings. Television was dreary, full of the Leader's speeches and only occasionally enlivened by pirated foreign programmes, including the nation's favourite: Monty Python's Flying Circus. Libyans watched it, not laughing but nodding. They said: "That's our country they're showing." It was an oil-rich country with broken pavements and an atmosphere that discouraged taking a walk in the dark. No obvious threat, no armed men prowling the street, just hotel employees and anonymous regime officials twitching with an unexpressed fear that "things might happen . . ." 
So how did the nation function?
There were ministries – just about. Some able men managed to push various policies into practice, but were frequently thwarted by capricious and instant legislation. One afternoon the Colonel addressed a deliriously enthusiastic meeting and suddenly announced that all imported luxury cars were to be got rid of. Fifteen minutes later, a bodyguard sidled up to him to mention that several vehicles in his own motorcade were on fire outside. The order was rescinded on the spot.
Appointments were made without relevance to merit. A nervous civil service never questioned the coming and goings. At the Interior Ministry I asked the man in the biggest office (with a broken fax machine and no working telephone) if he were the minister.
"Maybe," he replied, adding that he had been last year, then someone else had been appointed while he was still in post, but had subsequently . . . er . . . left town . . . "So, maybe I'm the minister," he added helpfully.
Farce mingled with fear. That is how the country ran. At the very heart of the mysterious administration was a clutch of men loyal to – but still very scared of – the Colonel himself.
There are few times when any of us experience total fear. To tremble with fear is a cliche. However, on two occasions I noticed officials in his presence start to shake. I wondered if they were ill, then realised that they were unable to control their fear, sweating and twitching and trying to edge out of his direct gaze. I once asked one of his inner circle – we were not in Libya – why his close colleagues behaved that way. He thought and then said that the Colonel's rages were occasionally so terrible that many thought he might kill. "It's terrible," he said. "But what can we do? He has the power. There are no alternatives in this kind of world. I'd rather not talk about it."
The outside world mostly saw the circus, the oddities, the bizarre behaviour. "Flaky," chuckled President Reagan.
Gaddafi called himself Colonel occasionally and refused to acknowledge the phrase President, preferring the term Leader. He was costumed theatrically – admiral, desert Bedouin, Italian lounge-lizard. He occasionally used the trappings of conventional power – long motorcades – or the occasional white horse. However, he was just as likely to turn up driving a battered small Peugeot with the bumpers missing. I know, because he nearly ran me over one morning trying to park the wreck very inexpertly outside my hotel.
Gaddafi grew notorious for weird behaviour – pitching tents in cities, spouting seven-hour speeches and making absurd claims. However, ignorance drove this as much as instability.
What actually went on in his innermost circle was virtually impossible to learn with any certainty. As his sons grew up, appeared in public, travelled abroad, partied and disgraced themselves with the behaviour of wilful rich brutes, there was no public mention of the succession."
Full article...

Hedge Funds: The Philosopher Kings

"FORBES
Steven Drobny's inside look at hedge funds couldn't come at a more appropriate time. Everyone should know what makes these private investment partnerships tick, where they are putting their gobs of money and how they see the markets going forward. Hedge funds, after all, are believed to account for up to half of all stock trading and are the controversial focus of a debate and legal fracas over their regulation.
Drobny's Inside The House of Money ($30, John Wiley & Sons, 2006) sheds more light than ever on the minds behind the largest global macro hedge funds, those giant pools of money that see the whole world as their oyster (unless they've gone short on shellfish). They make big bets on crude oil, Eurodollars, gold, Japanese bonds, Brazilian soybeans, sugar, cotton, you name it--investments that most ordinary investors would likely avoid.
Drobny humanizes his hedge fund operators, showing them as global thinkers out to exploit any opportunity in inefficient markets, but not as a force out to destroy the financial system. It is a welcome relief from the harping of a skeptical crowd of onlookers who seem to see the forces of darkness lurking behind every one of these partnerships.
The book reveals the intricacies of thinking like a hedge fund manager. Marko Dimitrijevic of Miami's Everest Capitalliked Argentinean banks, went short with Japanese government bonds when they were yielding only 0.45% (very clever, because interest rates were bound to rise and depress the bonds) and was also playing the markets in Cyprus, Mongolia and Uruguay. He also recommended YUM Brands (nyse: YUM - news people ), owner of Kentucky Fried Chicken and Pizza Hut, as the best American stock to play the growth in China.
There's some brilliant common sense here, valuable to us mere mortals. Dr. John Porter of Barclay's Capital believes that momentum trading is the flavor of the month and that "people who are indexed are going to get killed." Porter anticipated the knee-jerk response of the U.S. Federal Reserve to loosen money when tech stocks sold off in 2000. He loaded up on two-year Treasuries at 6.75%, which was a bet that interest rates were headed down and the value of the notes were headed up. It was a highly profitable play when the cost of money dropped to 1%.
Drobny also shows how managers have learned from past hedge fund failures. Peter Thiel of Clarium Capital in San Francisco refuses to become the next Long Term Capital Management. He places stop-loss orders on every trade-- a very tough discipline--but one that limits disastrous losses.
One shortcoming of the book is that since hedge fund operators are so nimble, they may well be long out of the positions they revealed to Drobny in 2005. That's the nature of hedge funds; they don't have investment committees and can dump a position in five minutes and get back in it the next day. What's compelling among these money managers is their intensity in educating themselves about nations and bottom-up individual investment opportunities."
Continued...

Tuesday 1 March 2011

Arab revolutions: The limits of intervention

"THE GUARDIAN
The conflict inherent between policy and principle continues to this day

The international community has been compromised by the revolution sweeping the Arab world. In three uncertain weeks, the United States vacillated from urging stability to shore up a strategic ally in Hosni Mubarak to cheering his overthrow. France trod the same path inTunisia. Happily, the foreign minister Michèle Alliot-Marie, whose first reaction to the uprising was to offer Ben Ali France's superior knowledge in riot control, has finally resigned. But her family's involvement with the ancien regime (her parents had shares in a property company owned by a businessman close to the regime) provided its own morality play.
Few were disinterested observers. When it came to the crunch, such as organising the interrogation under torture of jihadis picked up in Pakistan, the CIA, among others, traded with the darkest elements of Mubarak's regime being denounced with such ardour today. Russia and China, both of whom have much to fear from spontaneous demonstrations by their own people, have fared little better.
The conflict inherent between policy and principle continues to this day. While the world's attention has been focused on a mad colonel's dying days, Libyan troops are not alone in firing on unarmed demonstrators. After a mass demonstration in another Tahrir Square, this time in Baghdad, Iraq's security forces detained 300 people, among them prominent journalists, artists and intellectuals, some of whom were laterbeaten up or tortured in custody. At least 29 died nationwide in Iraq's "day of rage". Rather than denounce an ally in Nouri al-Maliki, whose coalition government Washington toiled hard and for many months to create, the US embassy in Baghdad played down the violence.
Three lessons should be drawn from the revolutions taking place inLibyaEgypt, Tunisia and elsewhere. The first is that they belong to the people who made them. The Libyans, Egyptians and Tunisians have made enormous personal sacrifices to get this far, humbling eyewitnesses with their determination and heroism. They do not want, nor have they yet sought foreign intervention. The ownership of change across the Middle East does not, however, make international action irrelevant. The vote in the United Nations to impose travel and asset sanctions on Gaddafi and his entourage broke new ground for the international support it mustered, helped not least by the Arab League, the African Union and support from Libya's own US mission, which defected en masse. It is unlikely to continue, but the process of rediscovering the benefits of genuine international coalitions and institutions like the human rights council is a healthy one."
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Meet mega bestselling Indie heroine Amanda Hocking

HUFFINGTON POST
Amanda Hocking is really something of a wunderkind. At only 26 years old, the Minnesota native has written a total of 17 novels. Since self-publishing eight of those books in April 2010, she's sold over 185,000 copies, making her indie publishing's latest star. Most of us are familiar with J.A. Konrath, who, after self-publishing several of his unpublished novels in ebook form and realizing how much more money he could make on his own than with a traditional publisher, became indie publishing's most vocal champion. But many are quick to point out that Konrath had already been traditionally published when he decided to self-publish, so he already had an established fan base. Hocking, on the other hand, was an unknown, until April 2010.
Here is my interview with Ms. Hocking.
TP: You write a couple of bestselling series - young adult paranormal romance and urban fantasy. Can you give us an overview of those series, what they're about and their themes?
AH: I have three series out now - My Blood Approves is the first one I released, and it's about vampires in Minneapolis. There are four books in that series, plus a novella. My other series, the Trylle Trilogy, has the first two books out now, with the third book coming out soon, and that's my best selling series.Hollowland is the only book I have out now in a series about zombies. This one has a really tough heroine, but it's still romance-y.
TP: You began self-publishing these series in April 2010, correct? How many copies have you sold at this point?
AH: As of Tuesday, January 04, 2011 at 9 PM, I've sold over 185,000 books since April 15, 2010.
TP: And are the sales a combination of ebooks and print books?
AH: Yes, they are, but the majority is ebooks through Amazon and Barnes & Noble. I've sold about 2,000 paperbacks since October, and prior to October, I sold maybe 20-50 paperbacks.
TP: Where all are your books available?
AH: All eight of my books are available on Amazon and Barnes & Noble. Several of them are available at the iBookstore and Sony ereader stores, but I have to upload them through Smashwords there, so it takes longer to get them uploaded there. All my paperbacks are available through Amazon only.
TP: How long did it take for sales to really take off?
AH: I published to Kindle in April, and I haven't sold less than 1,000 books a month since May. So my sales took off somewhat quickly. They didn't really start to explode until November. I published the second book in my Trylle Trilogy mid-November, and my sales really began to take off after that.
TP: When did you begin writing, and what inspired you to become a writer?
AH: I was always writing. When I was a little kid, before I learned how to write, I would tell stories. But as soon I as capable, I started writing. I filled notebooks and notebooks until I got my first computer when I was 11. It never really occurred to me that I would do anything else."


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Authors catch fire with self-published e-books

"USA TODAY
You may not know her name, but Amanda Hocking and others like her are riding the comet of digital publishing.

Fed up with attempts to find a traditional publisher for her young-adult paranormal novels, Hocking self-published last March and began selling her novels on online bookstores like Amazon and Barnesandnoble.com.

By May she was selling hundreds; by June, thousands. She sold 164,000 books in 2010. Most were low-priced (99 cents to $2.99) digital downloads.

More astounding: This January she sold more than 450,000 copies of her nine titles. More than 99% were e-books.
"I can't really say that I would have been more successful if I'd gone with a traditional publisher," says Hocking, 26, who lives in Austin, Minn. "But I know this is working really well for me."
In fact, Hocking is selling so well that on Thursday, the three titles in her Trylle Trilogy (Switched, Torn andAscend, the latest) will make their debuts in the top 50 of USA TODAY's Best-Selling Books list."
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