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Mr. Martin A. Armstrong of Princeton Economics was arrested Monday,
according to AP.
The charges (as I understood it):
1. Mr. Armstrong sold about $3 billion notes to foreign (mostly Japanize)
investors with the promise to invest money safely.
2. Mr. Armstrong lost about $1 billion through "risky trading".
3. Mr. Armstrong commingle the funds with his firm account and issued
"false statements" to the investors (with the help of some people in the
Republic Securities).
If the allegations are true (I will keep the "if" as long as I could) it is
very sad news for people who knew Mr. Armstrong personally. I first meat
Mr. Armstrong in 1986 through Foundation for Study of Cycles (he is current
chairman of this foundation) and had opportunity to speak with him through
the years.
Mr. Armstrong was an inspiration for me: a handsome man of my age, reached
tremendous success in his very early years, devoted student of market
history, sharp witty mind, financial advisor for the governments,
conservative republican. The fate seems smiled at him.
I would not be a judge of temptations he went through (if allegations are
true), but the one thing I will tell my son to include in his traders
prayer: always have a money management stop. No meter what, losses of 10%,
20%, 25% are "easy" recoverable. Get out, sell everything, take around the
world cruse, come back and evaluate the situation. You would never be
pushed to the edge where man's heart enters the twilight zone.
Very Sad Alex.
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