Netto's Numbers 2009 Preview : Structuring and Spreading

John Netto - President - One Shot - One Kill Trading - 6 PM ET Sunday, January 4 - In the wake of the bloodiest and most volatile year in decades, much of the trading and investment public is confronted with two prominent ideologies. The first being this record sell off is creating lifetime buying opportunities and those positioned properly will reap huge rewards at purchasing investments at bargain prices. The second being the financial system is materially altered and equity/emerging market/carry trade currency returns will languish as a result of the world heading into a protracted recession/depression with cash being king. The previous paragraph only addresses what impact 2008 has on future investment perspective. However there exists a larger and greater structural issue from this financial fallout. This being how investors view their investments and the "framework" they are managed under. The framework for how one customizes their portfolio in gauging what return they are seeking, the framework for greater transparency. And inevitably, how will investors adjust their framework in terms of liquidity and the ease of gaining access to their capital. The days of multiple layers of fees, long lockups, and passive management are in our rear-view mirror. This past year not only leaves us with questions about what is the next best sector, but more importantly, what is the next best structure. Firms that offer products addressing this will reap huge rewards and position themselves to grab the reigns of leadership in the financial services marketplace. I'll expound more on these products and firms in coming weeks and months along with ideas on how to make a play in this space… As the Chief Investment Strategist for NetBlack Capital, LLC, (www.netblackcapital.com) we're advising our clients and managing positions in a way that takes advantage of the opportunities created by what's discussed in the aforementioned paragraphs. No doubt the precipitous sell off in currencies, commodities, real estate, and equities witnessed in Q3-Q4 has created volatility we will likely never experience again (VIX spiking to 90 intraday). The subsequent market action should create a distinct bifurcation of haves and have nots in 2009… The haves will be those sectors within the equity, commodity, and currency space that shake the dust off of this wealth retrenchment and began to build traction in 2009. These investment vehicles will continue to decouple during the next round of selling that invariably hits, thereby distinguishing themselves from the group that have been shackled with the overriding issues that plagued the markets in 2008. The below trade ideas are not all inclusive of the current portfolio I manage, as the market is in a constant state of flux. The point behind the below ideas is to provide insight into the process of what I am doing in an attempt to be profitable for 2009 and continue to deliver a great return per unit-of-risk invested… Trade Ideas... . . . (to read the remainder of this article, please log in below.)