Month: September 2012

Will Facebook Mobile advertising and Search save FB

Mark Zuckerberg made all the headlines a week ago when he gave his first public interview in a TechCrunch conference. He mentioned Facebook (FB) was concentrating on mobile as well as improving its Search function, both of which would significantly add to FB’s revenues. Investors cheered and the stock has been up almost 25% since then, before taking a breather yesterday. So is Facebook a buy or this is a head-fake ? Let’s look at the facts –

Using the VIX Index as a market forecasting tool

The VIX Index, also known as the “Fear Index”, is one of the most watched indices in the markets. The VIX Index is a measure of Volatility in the markets. You’d be forgiven if you believe that the VIX should go up when the markets are volatile, on the upside or the downside. But this is not the case. The VIX actually goes up when the markets go down, and goes down when the markets go up.

QE and Interest Rates – The Fed needs to be called on this bluff

One of the most widely used reason (or excuse) for Quantitative Easing (QE) is that it keeps interest rates low. This is in fact a myth or a bluff and it’s surprising not more people call this bluff. In fact, with the Fed buying mortgage-backed securities or Treasury Bonds, interest rates have to go up. Why is this the case – let’s break it down in simple terms.