Economics in relatividad.org - Economics articles in relatividad.org and bolseando2 translated to several languages

“;The Intelligent Investor”; From Benjamin Graham

Aquí tenéis un ;resumen comentado capítulo a capítulo del libro “;The Intelligent Investor”;.

“;The Intelligent Investor”; It is a book written by Benjamin Graham, considered the father of value investing. The book is considered a classic work on investing and has been influential in the way many people view and practice investing.

In the book, Graham emphasizes the importance of fundamental research in making investment decisions. He argues that investors should look for companies that are undervalued relative to their economic fundamentals, as net worth, cash flow and profit. Graham also talks about the importance of investing diversification and advises investors not to put all their eggs in one basket.

The book also focuses on the importance of having a long-term approach to investing. Graham argues that investors should be patient and wait for a company's economic fundamentals to be reflected in its long-term market price.

Another important theme in the book is the importance of risk management in investing. Graham advises investors to set loss limits and avoid investing in companies that are in a weak financial position.

In summary, “;The Intelligent Investor”; is a fundamental book that offers a practical and grounded approach to investing. Benjamin Graham presents concepts and strategies that help investors make informed, long-term decisions and manage risk in their investment portfolio.

Expropiation of Repsol, what Argentina seeks

Cristina KirchnerArgentina, o más bien Cristina Kirchner ha decidido la ;expropiation of shares REPSOL ;YPF owns. At least almost all of them, since they are left with 51% of YPF from the 57% that REPSOL owned.

Pero ¿podemos llamarle a esto “;expropiación”;? Or is a simple THEFT?

Why is 51 in the hands of REPSOL? Why not prorated between all shareholders?
Continue reading “Expropiation of Repsol, what Argentina seeks”

Elliott waves

The Elliott Wave Theory was discovered in the late 1920s by Ralph Nelson Elliott. He discovered that the stock market does not behave chaotically but in repetitive cycles, reflecting the actions and emotions of humans and due largely to mass psychology that he sees as the main culprit.

It was partly based on the Dow theory, which also uses the waves for the study of the stock market, but Elliott discovered the stock market fractral nature (repeating the same patterns in major and minor scale), analyzing it in more detail, and after years of study, identifying appropriate patterns to make predictions.
From the 70s it gained popularity thanks to the predictions of rises and crashes made by Frost and Prechter (“;Elliott Wave Principle…;key to stock market profits, 1978”;).

Continue reading “Elliott waves”

Simiocracy, from Aleix Salo

Tras su famoso “;Españistán”;, Aleix Salo delights us with a new book, and especially with a new video-comic about the economic crisis of Spain.

Esta vez se trata de “;Simiocracia”;, that tells us about the sufferings of the Spanish economy since 2008, when the housing bubble burst, hasta ahora. ; Enjoy the video and do not forget to review the previous: ;Españistán

Comparing 20 years of stocks, oil, pension plans, housing and gold

Let's see a comparison of 20 investment products, analyzing its evolution during the last 20 years, that is, from July 1990 to July 2010. The comparison is very interesting coming out as the winner the investment in oil with an annual profit of 7,09% and as a loser the investment in the Japanese stock market with an annual loss of 5,72%. See the summary:

MAIN ASSETS
Profitability
Brent
7,09%
Emerging RV
7,02%
RV Spain
6,76%
RV USA
6,61%
RF credits USA
6,21%
RV Germany
5,99%
Gold
5,94%
RF rental eurozone
5,90%
Mixed RV pension plan
5,72%
Spanish housing
5,32%
RF pension plan credits
5,26%
Mixed RF pension plan
5,11%
RF p USA
5,03%
RF p eurozone
5,03%
Plan pension RF p
4,96%
RV United Kingdom
4,10%
Inflation in Spain
3,37%
RV France
3,13%
RV pension plan
2,17%
RV Japan
-5,72%

Annualized data (evolución Julio 1990 –; Julio 2010)

Why is not recovering the Spanish economy?

(Fishing an article in our blog bolseando2.blogspot.com)

Why the stop in Spain not low and in other countries Yes??

Does that the Spanish economy does not end out of the hole and the German Yes?

Diving in the website of the Ministry of economy and finance are found interesting graphics that help us to understand it. Let's look at one.

Inflation and growth in Brazil

Recupero parte de un artículo de ;Luciano (aka. Elemaco) from his blog ESC, which examines the phenomenon of growth without inflation in Brazil:.

Brazil experienced, since Lula took eight years ago, el proceso ; more intensive of distributive improvement and fighting poverty in recent history. Brazil's Gini falls from 0.59 to 0.54, in an even stronger improvement than Argentina's from the height of the crisis in 2002 to 2007. Poverty and indigence, for its part, fall 12% and 8% respectively.

poverty and GINI index in Brazil

The evolution of the stock market in the long term, and inflation

(Published in bolseando2 in Spanish in April 2010)

En dshort.com tienen unos gráficos muy interesantes de largo plazo sobre el S&;P 500.

Let's observe the following that indicates the evolution of the SP500 from 1870 to 2010, both in nominal value (the one that shows the index that all people can found in many websites) como en valor “;real”;, i.e. discounting inflation, y además nos da los gráficos correspondientes al valor “;total”;, i.e. taking into account dividends received throughout those years and assuming that we reinvest them.
Continue reading “The evolution of the stock market in the long term, and inflation”

ESPAÑISTAN, real estate bubble and Spanish crisis

ESPAÑISTAN, The housing bubble and the Spanish crisis in comic version, by Aleix Salo

Aleix Saló prepares the release of a comic strip set in the Spanish real estate bubble and the subsequent crisis that Spain has suffered since 2008.

For its launch has created a very interesting video that illustrates the process lived in Spain, and that in 2011 it is still suffered.

Enjoy the video:

.

And if you want to download the video, I recommend you to follow the next instructions for download videos from firefox.

About productivity in Spain and other European countries

En Cotizalia  ; Kike Vázquez delights us with a post about productivity, that I liked so much that I'll copy it here:

I do not know if you happen to everyone but to me that about productivity that is talked so much not just stay clear to me. They say that we are working little, that we are lazy, that we have to lower our salary by 25% to start being competitive or "to work a little more and earn a little less" according to other sources. Go, well, we are so cheeky the Spaniards?! Fortunately, they warn, because to today I went out with confidence into the street without fear of being extorted by any of these hazardous man…

Continue reading “About productivity in Spain and other European countries”

Austrian business cycle theory

I start this article by copying and pasting from the Wikipedia:

The Austrian theory of the business cycle (ATBC) was developed by economists from the Vienna school, including F.A. Hayek and L.V. Mises. It explains the relationship between bank credit, economic growth and massive investment errors that was accumulated in the bullish phase of the cycle, bursting with the bubble and destroying value.

It argues that a expansión “;artificial”; of the credit, i.e., not supported by previous voluntary savings, tends to increase investment, since relative prices have been distorted by the greater mass of money circulating in the economy. These investments, that had not been undertaken without the aforementioned distortion, overuse accumulated capital goods, and sooner or later the artificially low interest rates are arranged in their true level of market, usually very Continue reading “Austrian business cycle theory”

The destruction of money and the crisis

The money can be created, as I indicated, and can be destroyed. I do not mean to burn banknotes. Merely to repay a loan is a destruction of the virtual money involving own debt. If I sign a promissory note and others used this promissory note as payment, the promissory note is money. If I cancel the debt of the promissory note, the promissory note ceases to exist, the money disappears from circulation. Both money existed in the time before my payment, the promissory note and my money, and when cancelled it ceases to exist the promissory note. Destruction of money.

Continue reading “The destruction of money and the crisis”

The Money and money creation

MONEY AND MONEY CREATION (How to do)

Money in today's world is pretty confusing. It is not gold. It is not even a right to you receive gold. It is simply "buying power". Whether it is a paper-currency or a point in your bank account, what it represents is your purchasing power.

Why central banks are so obsessed by inflation. Its primary mission has become to get that the money in circulation remains reasonably its purchasing power. If there is high inflation, then the purchasing power of our money decreases rapidly and the money ceases to have value; and everyone is looking for an alternative, other currency, property, gold, whatever that were not loosing "purchasing power" in the market.

Continue reading “The Money and money creation”