September 15, 2008

Porcupine Provision vs. Greenmail

So, I am closing in on the end of my studies for the Series 7 test. It's been a long road (about 800 pages of information in preparation for a 6 hour test) but my practice test scores so far are good!

I thought I should share with you all some of the things I am learning. I know what you are thinking right now - oh great, Nerdfest 2008. No. You didn't let me finish... What I was saying was that I was going to share with you about universally interesting things from my studies, sheesh.

So, what I'd like to share today is some slang. Yes, that's right, the securities industry has some of the best slang. Not only is it weird but also truly trivial in nature and probably unneeded. Okay, some of it's technical jargon but it's all pretty weird and hence worth sharing (don't judge).

For awesomeness sake I will make it into a quasi-story for those of you who like story time.

Navigating the financial markets can be tough, not just as investor but also as a corporation. If a company is looking for some Inorganic Growth and considers you a Sleeping Beauty it's time to brace for the Saturday Night Special and ready your War Chest or try to pull off a Pac Man otherwise you'll probably lose your Crown Jewels. Likewise, as an investor it's easy to see Spurious Correlations or buy a Torpedo Stock that you thought was a Bo Derek, am I right?

Before you know it, that stock is approaching Bagel Land and now you're Aunt Millie. You'll be hoping for a J. Lo but it turns out to just be a Dead Cat Bounce and you ultimately end up Losing Your Shirt. A Graveyard Market is hard on us all, you know?

Luckily you have some options. You can always try to Sandbag the Black Knight. Perhaps set a Lobster Trap or a Poison Pill but be sure you also have a Dead Hand Provision or even the best Shark Repellent or Macaroni Defense won't help you. If you're lucky you might have a White Knight show up which is fine but beware of the Lady MacBeth Strategy or hope that you actually have a Yellow Knight instead!

So how can you tell what's really going to happen? Can you really trust a Soccer Mom Indicator or the Aspirin Count Theory? And seriously, The Superbowl Indicator and the Skirt Length Theory? I think I'd rather take my chances and pick up a War Baby. But sometimes there isn't much you can do to avoid the Bon Voyage Bonus or a Dawn Raid - just another victim of Affluenza. Cheer up though, I still think you can Beat The Gun maybe with some Big Uglies instead of Casino Finance because we both know where picking the Cats and Dogs got you last time! Here's hoping they Cut The Melon!

See, now wasn't that fun?


No comments: