Keith Fitz-Gerald- Money Morning - Only the News You Can Profit From.
Keith is the Chief Investment Strategist for Money Map Press. A seasoned market analyst and professional trader with more than 30 years of global experience, Keith is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes.com recently hailed him as a "Market Visionary."
He is a regular on FOX Business, CNBC, and CNBC Asia, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, Forbes, and MarketWatch.
Keith has been leading The Money Map Report since 2008, our flagship newsletter with 80,000+ members. He's also the editor of the High Velocity Profits trading service. In his new weekly Total Wealth, Keith has taken everything he's learned over a notable career and distilled it down to just three steps for individual investors. Sign up is free at totalwealthresearch.com.
Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.
Keith'S LATEST HEADLINES
- Keith Fitz-Gerald 86 Wednesday, October 12, 2011Derivatives: The $600 Trillion Time Bomb That's Set to Explode
Do you want to know the real reason banks aren't lending and the PIIGS have control of the barnyard in Europe?
It's because risk in the $600 trillion derivatives market isn't evening out. To the contrary, it's growing increasingly concentrated among a select few banks, especially here in the United States.
In 2009, five banks held 80% of derivatives in America. Now, just four banks hold a staggering 95.9% of U.S. derivatives, according to a recent report from the Office of the Currency Comptroller.
Derivatives played a crucial role in bringing down the global economy, so you would think that the world's top policymakers would have reined these things in by now – but they haven't.
Instead of attacking the problem, regulators have let it spiral out of control, and the result is a $600 trillion time bomb called the derivatives market.
Think I'm exaggerating?
The notional value of the world's derivatives actually is estimated at more than $600 trillion. Notional value, of course, is the total value of a leveraged position's assets. This distinction is necessary because when you're talking about leveraged assets like options and derivatives, a little bit of money can control a disproportionately large position that may be as much as 5, 10, 30, or, in extreme cases, 100 times greater than investments that could be funded only in cash instruments.
world's gross domestic product (GDP) is only about $65 trillion, or roughly 10.83% of the worldwide value of the global derivatives market, according to The Economist. So there is literally not enough money on the planet to backstop the banks trading these things if they run into trouble.
- Article 18 Monday, October 10, 2011One of These Banks is Europe's Lehman Bros. – And We're Going to Profit From Its Collapse
- Investor Reports 4 Friday, October 7, 2011U.S. Economy In Crisis: How To Prepare For The New 2012 Recession
- Article 10 Friday, September 30, 2011Four Ways to Play the Bond Market Bubble
- Keith Fitz-Gerald 15 Monday, September 19, 2011The Looming Bear Market: What You Can do That Washington Can't and Wall Street Won't
- Keith Fitz-Gerald 6 Monday, September 12, 2011Three Moves to Make Before the Next FOMC Meeting
- Commodities 18 Tuesday, August 30, 2011Why Gold Will Replace U.S. Treasuries as the World's Last Risk-Free Investment
- Keith Fitz-Gerald 2 Wednesday, August 24, 2011Could Goldman Sachs Group Inc. (NYSE: GS) CEO Lloyd Blankfein Do the First "Perp Walk" of the Financial Crisis?
- Banking 26The European Banking System is Finally on the Verge of Collapse
- Keith Fitz-Gerald 6 Monday, August 22, 2011How You Can Beat 'The Street'