Season 17 Checkpoint

We’ve finally reached calmer waters, and now is a good time to reflect on what we’ve produced. There’s no telling when we’ll reach the shore, so let’s enjoy this break and see where we stand.
So far this year the Underdog Theorem is up almost 30% for the conservative investors who chose the UTV fund, [...]

Split the Banks Into Utilities and Casinos

Not just a big deal that the head of the Bank of England is calling for the break up of big banks in the U.K., it’s noteworthy how honest he is in describing what most of them have become.
From the article:
“The second option might involve preventing banks from combining risky ‘casino’ activities with the basic, [...]

60 Minutes: Wall Street’s Side Bets

We are forbidden by law to wager our own money on football games, but Congress changed the law in 2000 so that Wall Street could legally make bets and nearly bring down the world economy.  Good show, gents.
Entire clip is fascinating, but if you are pressed for time, start it at 1:15.  You’ll hear:  “… [...]

Jon Stewart, Dangerfield Look-alike, Interviews Jim Cramer

Jon, you’re starting to look just like Sir Rodney.

Wall Street Madoff Like Bandits

I have a bit of a chip on my shoulder when it comes to Wall Street, so I will keep my comments to a minimum. The Bernie Madoff scandal is an appropriate ending to the craziest year on Wall Street in many generations.  Please read Paul Krugman’s New York Times article (link and excerpt [...]

IMPORTANT: Options for UT Newbies

SEASON 16 FINAL BANKROLL SCENARIOS
-UTV- -UTV%- -UTG- -UTG%-
 1774   55    2600   69 < – – BEST CASE
 1674   48    2500   65
 1574   41    2400   61
 1564   40    2390   60
 1474   34    2300   56 < – – CURRENT
 1464   33    2290   56
 1233   17    2059   46
  648  -25    1474   21 < – – WORST CASE

The official season will continue for as long [...]

Mean Reversion – Giants, Titans

Unrelated to the Underdog Theorem, just an NFL point spread thought to share while we wait for Season 16 to resume – keep an eye on the Giants and Titans against the spread for the rest of the season.
In finance, some investors think that prices and returns revert to the mean. Basically, if a [...]

Buffett’s Bet

A few weeks back, the American press openly reported that Senator McCain gambled.  Now the news is covering the fact that Warren Buffett bets!  Never has the United States’ categorization of legal vs. illegal gambling seemed more absurd than it does right now.  There are no laws in place to prevent Wall Street from jeopardizing [...]

A New Start

Today is Day 1 of the new blog. My pre-WordPress blog posts are available through the ‘OLD BLOG’ button at the top of each page. I have so much news to report that I don’t know where to begin. The most important task for today is to relaunch The Underdog Theorem Blog [...]