Using Veritas to Construct the "Per…

29-04-2017 Hits:87219 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:81136 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:80978 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:85451 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:81950 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:84137 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:55200 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:83394 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:83135 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:83027 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:89287 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:86999 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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Recently, someone emailed inquiring why I am so negative and wondering if I have any long ideas that I was interested in. Well, there are a few companies that I have looked at, that I think are a strong franchise. Keep in mind that this is not an advice column and I cannot and do not give advice here, hence I don't mention these companies. In addition, and even more important, I don't buy them. The macro scene globally, and particularly in the US, Europe, (and to a lesser extent, Asia) is abysmal, and it is getting much worse by the day. The trend is down, and sharply down. Why would I want to try to bottom fish or go long in a market where everything so obviously pointed downward? I liken this to trying to ice skate uphill. While technically possible, it is improbable and definitely not the best use of my talents, resources or time. A bear market can wipe out your portfolio, and if you buy in at the wrong time, will require up to, and over a decade just to break even. Look at those that bought at the top of the tech bubble. Those that bought at the top of the real estate bubble may do even worse. Most people who buy in to extreme swings to the upside (read as bubbles), usually buy in at the top, where most of the damage is done on the way down.

Let's take a look at what has happened over the US holiday weekend:

  1. ACA monoline insurer misses deadline on forebearance from creditors, may go into receivership
  2. gets its much deserved lowering of its credit rating from BAA, devaluing thousands of debt securities it insures along with it (this is a semantics game, the securities are intrinsically worth just as much now as they were last weekend, at least in regards to exposure from Ambac as a counterparty.)
  3. MBIA and several others are threatened the same as above
  4. The smaller reinsurers that back the primary are having their ceded coverage written down, some which is written down to zero!
  5. The party will really begin when everyone realizes that these guys all incestuously reinsure each other, and they are all sick.
  6. The financially engineered, off balance sheet vehicles of many corporations are blowing up.
  7. Housing inventories are at record levels.
  8. Housing prices are dropping at record rates.
  9. Despite this, most housing is as compared to incomes and income growth - thus is overpriced, even after historically record drops
    Despite
  10. that, most housing is overpriced in comparison to historical rental yields.
  11. Most housing is overpriced as compared to the real cost of building and demand.
  12. We are coming off of the greatest risky asset bubble since, or even before the US Gold Rush
  13. Financial companies world wide are taking record write downs and losses, quarter after quarter ''
  14. Number 13 ain't gonna end no time soon!
  15. Credit markets are freezing up
  16. Overpriced residential real estate is not moving
  17. Overpriced commercial real estate is coming up for refi from short term loans and the market is not receptive at all
  18. There are more commercial properties with cap rates below the risk free rate than at any time that I know of.
  19. The US consumer is tapped out and spent, overloaded with debt and unable to drive the global economy at the unsustainable rate that it has over the last two bubbles.
  20. The Asian and European economies that depended on this stretch and strapped US consumer will disprove the decoupling nonsense theory and lead the world into a global hard landing.
  21. We are already in recession
  22. We are already in a bear market
  23. Believe it or not there is still a majority of positive sentiment screaming buy on the dips at CNBC and this and that stock or industry is oversold and so and so is undervalued...

I can go for some time here...

On the day we celebrate Dr. Martin Luther King's birthday...

EUROPE MARKETS

      PRICE   CHG   %CHG      

Belgium 3540.02 -155.11 -4.20%
U.K. 5686.20 -215.50 -3.65%
France 4856.43 -235.97 -4.63%
Germany 6932.79 -381.38 -5.21%
Italy 34413.00 -1340.00 -3.75%
Netherlands 431.98 -18.10 -4.02%
Norway 450.93 -22.69 -4.79%
S.Africa 25533.32 -1119.34 -4.20%
Spain 13056.40 -599.00 -4.39%
Switzerland 7360.30 -331.68 -4.31%
  
Sources: Dow Jones, Reuter
  
Asian stocks echoed the weakness and closed sharply lower, with Hong Kong’s Hang Seng Index and the Shanghai Composite Index falling over 5 percent. Wall Street stock index futures tumbled too -- with Dow futures down more than 350 points -- but the effect of plummeting futures would have to wait until Tuesday as the U.S. market is shut for the Martin Luther King, Jr. Day holiday.
ASIA MARKETS
8:29 am EST

      PRICE   CHG   %CHG      

Australia * 5630.90 -168.50 -2.91%
Hong Kong * 23818.86 -1383.01 -5.49%
India * 17605.35 -1408.40 -7.41%
Indonesia * 2485.88 -125.25 -4.80%
Japan * 13325.94 -535.35 -3.86%
Pakistan * 13850.03 -24.51 -0.18%
Philippines * 3152.30 -16.00 -0.51%
S.Korea * 1683.56 -51.16 -2.95%
Sri Lanka * 2387.93 5.60 0.24%
Taiwan * 8110.20 -74.45 -0.91%
Thailand * 766.53 -23.14 -2.93%
  
Sources: Dow Jones, Reuters

Now, I have a choice of being net short, hedged long, naked long, or in cash. I have been over 100% short and bearish for quite some time now, with the anticipation that at least 70% of the companies that I am short will no longer be going concerns within 8 fiscal quarters. Last year, cash actually beat the major indexes. This year it will be even more exacerbated. Which would you rather be in this environment, long or short? Remember, don't try to ice skate uphill!!!