Postcards: The Worst Trade I've Ever Made

We all have bad trades and bad investments. Don't ignore them. Use them to improve your risk management and find the lesson in every single thing you do with your money.

Dear Fellow Expat:

It’s the first day of another negative momentum cycle.

So, greetings from Lansdowne Pub.

It’s a Boston-themed (BOO!) sports pub with pictures of Red Sox memorabilia on the wall, enough “handsome” pictures of Tom Brady to launch 1,000 ships to Tampa, and a large, drunken moose on every menu.

It’s the closest restaurant in the Florida Republic - just a quick golf cart trip up the road. There’s a fine Greek salad.

Negative momentum periods offer an opportunity to enjoy life a little more. We’ve largely moved to cash in our trading accounts and hedged existing long positions by selling calls.

Safe and sound, we now wait to see just what it is that’s caused the markets’ current predicament.

Is it a global liquidity event?  A problem with global collateral or cross-border capital movement - yuan-dollar woes?

What about rising interest rates? Or some other fun gray or even black swan lurking just beyond the horizon?

We’ll find out… but hopefully, while out kayaking or walking the d…