Vigorish Forum Now Accessible
By October of last year it was apparent that the securities market had become dislocated. In addition to redemption-related selling by hedge funds and mutual funds, prime brokers had begun to liquidate client accounts that held insufficient margin. The EMH premise that market participants buy and sell assets solely on the basis of economic value seemed invalid for the moment.
One of the most peculiar opportunities I discovered was a classical arbitrage in the shares and warrants of Foster Wheeler. On days that FWLT advanced considerably, FWLTW would sometimes have an ask price 5% lower than its intrinsic value, which was immediately realizable from the warrant conversion terms. This was my first discovery of a true market inefficiency—substantial in that the return was both riskless and immediate.
Soon I conceived the idea of creating a private forum to discuss similar arbitrage opportunities. I appreciate the input of everyone who has participated.
Well I don’t know about America, but Malaysia is booming thanks to China ! We in Malaysia are enjoying high growth and high inflation, I do not understand all this complaining. We have to thank China for our strong growth as our economy was going down until March 2009 and China rescued us by buying our commodities. Currently there is strong job market, 2 jobs for every worker, we have to import in foreign labour to do jobs that locals do not want to do ! We have high inflation, an example is a local dessert called “cendol” selling for $1.20 in local currency a month ago, is now selling for $ 1.80 in local currency. Thats a hefty increase, so don’t complain, enjoy the boom ! If we in Malaysia need extra money, we can get it by job hopping to a higher salary, you should do the same thing since there is so much money available !
Pardon me. Does somebody realize how to choose true Expert Avisor from bad and a true signals from fraudulent? big thanks