What are these investments called? | Forex Factory

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What are these investments called?

  • #1
  • First Post: Aug 15, 2011 8:58am Aug 15, 2011 8:58am
I was wondering how all investment possibilities together are called.


So how are

  1. options
  2. stocks
  3. currencies
  4. futures
  5. options
  6. bonds
  7. etc
  8. etc


Called together?

Would that be investment instruments, or investment vehicles, or ....

  • #2
  • Aug 15, 2011 9:45am Aug 15, 2011 9:45am
Quoting Pippipips
I was wondering how all investment possibilities together are called.


So how are

  1. options
  2. stocks
  3. currencies
  4. futures
  5. options
  6. bonds
  7. etc
  8. etc


Called together?

Would that be investment instruments, or investment vehicles, or ....

financial instruments
  • #3
  • Aug 15, 2011 10:17am Aug 15, 2011 10:17am
Thank you
  • #4
  • Aug 16, 2011 7:29am Aug 16, 2011 7:29am
In 2008 a few firms found out they are also called "WMD's"
  • #5
  • Aug 16, 2011 8:18am Aug 16, 2011 8:18am
Quoting pip_seeker
In 2008 a few firms found out they are also called "WMD's"
I thought that was only related to derivatives.
  • #6
  • Aug 16, 2011 10:48am Aug 16, 2011 10:48am
Quoting Custos
I thought that was only related to derivatives.
that's true to a degree but I was mostly referring to hedge funds in my comment. Because before 2008 most people thought you couldn't lose if you were "hedged".
  • #7
  • Aug 16, 2011 11:15am Aug 16, 2011 11:15am
Quoting pip_seeker
that's true to a degree but I was mostly referring to hedge funds in my comment. Because before 2008 most people thought you couldn't lose if you were "hedged".
And some people apparently nowadays still think that hedge funds actually hedge. They are like all other funds, but only that they are for institutional investors and are normally in countries where they can't be legally controlled and use leverage to maximize gains.

Only the very first hedge funds really hedged markets, nowadays they use all kinds of strategies.

And the notion financial weapons of mass destruction came from Warren Buffett, and he meant derivatives.
  • #8
  • Aug 16, 2011 12:19pm Aug 16, 2011 12:19pm
Quoting pip_seeker
In 2008 a few firms found out they are also called "WMD's"
Quoting pip_seeker
that's true to a degree but I was mostly referring to hedge funds in my comment. Because before 2008 most people thought you couldn't lose if you were "hedged".
Better get your facts straight before you start pretending you know something.

First of all, these so-called financial WMDs refer to CDOs (especially the synthetic ones), CDSs (naked CDS in particular), MBSs and other similar complex derivatives. These were later referred to as 'weapons' because they helped destroy quite a few companies' balance sheets, punched holes in pension funds and insurance companies balance sheets and even managed to off a few major banks. Some of these were instruments that were highly rated just before the crisis hit hence the widespread 'contamination'.

Second of all, the hedge fund industry was not responsible for creating the Great Contraction and the financial crisis. In fact hedge funds were losers because banks cut off their credit lines due to problems on the interbank funding market, thus they were forced to liquidate some of their positions. Furthermore, if you look at hedge funds' performance, you will see that they held up better than the general market.

Hedge Funds in general finished 2008 -18.3%, compared to S&P -37%.
(for comparison = 2007 SP500 3.53%, hedge funds 10.07%)
If you don't risk, you don't ever have to lose.
  • #9
  • Aug 16, 2011 12:30pm Aug 16, 2011 12:30pm
Quoting Custos
And some people apparently nowadays still think that hedge funds actually hedge. They are like all other funds, but only that they are for institutional investors and are normally in countries where they can't be legally controlled and use leverage to maximize gains.
I believe one of the things behind their success is the lack of legal requirements on what they can hold and/or trade. Pension funds, insurance companies and mutual funds have all kinds of state mandated requirements which very much limit what they can invest in. Of course, another major difference is their size and time horizon - the pension/insurance/mutual fund people are in it for the long run and have huge amounts of capital to invest. Hedge funds are usually smaller and have a shorter life-span due to the incentives, the money involved and the simple fact that the talent that once built the fund simply gets older over time.
Quote
Only the very first hedge funds really hedged markets, nowadays they use all kinds of strategies.
Spot on. And that's where the name comes from.

Quote
And the notion financial weapons of mass destruction came from Warren Buffett, and he meant derivatives.
I believe he had a few of these blow up in his face as well at some point.
If you don't risk, you don't ever have to lose.
  • #10
  • Aug 16, 2011 9:28pm Aug 16, 2011 9:28pm
Quoting bug
Better get your facts straight before you start pretending you know something.

Facts? I was merely stating my opinion. No where in my response does it say I was stating a fact.

You have your opinion I have mine.

A WMD is a weapon of mass destruction. I never said "financial WMD" I was merely joking.
  • #11
  • Aug 17, 2011 2:32am Aug 17, 2011 2:32am
Quoting pip_seeker
Facts? I was merely stating my opinion. No where in my response does it say I was stating a fact.
There is no room for opinions when discussing definitions. Go and read a few books and articles on CDOs, CDSs, their creation and their impact on the markets and you will realize why they're so important and why it is wrong to confuse them with stocks and options. A good place to start is a book called the Two Trillion Dollar Meltdown.

Look, I'm not trying to pick a fight with you. Neither am I trying to show you who's the smartest kid on the block (I'm not, anyway). But, knowing what I do about the markets and about derivatives in particular I consider it very important to discuss facts and not get sidetracked by opinions or definitions provided by Fox, NYT or some other mainstream outlet who usually gets it wrong. Not having the right facts/information has resulted in Dodd-Frank, for example. The US politicians' idea of financial regulation, which mostly targets those who were not responsible for the credit crisis and does nothing to address shadow banking, the derivatives market, leverage, capital ratios, moral hazard, corporate responsibility etc., is the direct result of misinformation and a lack of education.

Quote
You have your opinion I have mine.
I wasn't offering you my opinion, these were facts. Opinion are second rate anyway and although they have a place in every discussion, they are worthless without facts and correct definitions.
If you don't risk, you don't ever have to lose.
  • #12
  • Aug 17, 2011 6:09am Aug 17, 2011 6:09am
Quoting bug

I wasn't offering you my opinion, these were facts. Opinion are second rate anyway and although they have a place in every discussion, they are worthless without facts and correct definitions.

Ok here's a fact you may have over looked.

This is FOREX Factory.

Not CDO Factory, Not CDS Factory, etc.

I don't care what you are offering because you are too full of yourself to matter. Anyone who looks for a fight in forum board is a what?

Shew away BUG!
  • #13
  • Aug 17, 2011 6:15am Aug 17, 2011 6:15am
Quoting pip_seeker
Ok here's a fact you may have over looked.

This is FOREX Factory.

Not CDO Factory, Not CDS Factory, etc.

I don't care what you are offering because you are too full of yourself to matter. Anyone who looks for a fight in forum board is a what?

Shew away BUG!
why you are getting so defensive, he was just telling you where you were wrong and offered you a book to find out about the real definitions.

I don't see where you could take that in a bad way.
  • #14
  • Last Post: Aug 17, 2011 6:23am Aug 17, 2011 6:23am
Quoting Custos
why you are getting so defensive, he was just telling you where you were wrong and offered you a book to find out about the real definitions.

I don't see where you could take that in a bad way.

I'm not nor was I wrong because I wasn't stating a fact I was joking which I already mentioned.

Why would you take what I was saying as literal?

The question of the OP was already answered. As I said many times I come here because I am bored I was merely trying to be funny and somehow people get their panties in a wad.

That is the mentality of this forum board is to challenge everyone into a pissing contest. You need the authority of the board to show how much someone knows?

I don't need a forum board for credentials. Does anyone see how stupid this is?

I haven't even read what this other guy is saying because he took what I said completely out of context. Which puts us right back to the opinion category.

You have your opinion of what I said as fact.

I have my opinion as what I said as a JOKE.

If anyone became offensive it was Bug going off the deep end. (this is probably the longest explanation for a joke ever.)
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