The rumor says, "Economics is too theoretical for investments."

While they have produced a stock of literature about making money, very few economists turn out to be highly successful investors. The failure of Long Term Capital, an U.S based hedge fund with Nobel Prize Laureates in economics on board, is a notorious example of how poorly economists can lose in investments.

However, despite of criticism and sarcasm of the practicality of economics in investment, ignoring economics is never a good idea for investors. Indeed, fundamental analysis is economics-based to some extent.

Further in this article, a very specific and operable investment idea based on economics theory or reasoning will be discussed so as to illustrate how to plug economics into the investments.

So, what is Ground Zero? 

Market Commentary II

What an interesting week! 

China announced that they will be taking measures to cool down its economy.  This will be especially negative for commodities, especially metals, as they are used extensively in manufacturing. Goldman Sachs also downgraded some large mainland steelmakers as well as Aluminum Corp. of China. 

The U.S. also proposed curbs on the important banking industry.  President Obama said he wanted financial-sector legislation to include measures to stop banks engaging in proprietary trading and investing in hedge funds and private equity – which are important sources of income for banks.  These two major pieces of news caused a market crash late in the week.