Michael C. Thomsett

I was prompted to read this book after attending a talk last week at the German Ambassador's residence in London by Helmuth von Moltke, son of his namesake father who was one of the Kreisau circle of intellectuals trying to set out plans for a free and democratic Germany after the hoped for overthrow of Hitler's regime. Like most of those resisting the Nazi regime, whether simply intellectually, or politically and militarily, the elder Helmuth paid with his life for his opposition to the regime, the closing years of that short life being told at that talk through the letters he exchanged with his wife, now published in book form. The book in question in this review is, unlike that, a wide ranging look at all the forms, individuals and forces who offered resistance to Hitler and the Nazis, from even before the dictator was appointed Chancellor in January 1933 until the ill-fated 20 July 1944 bomb plot, which came the closest to wiping him out, though still nowhere near close enough. It was, naturally, extraordinarily difficult to make the necessary contacts under such a regime to plan effectively, with the ever present threat of betrayal by an informer though, even so, by 1944 the resistance was much more widespread than the regime was prepared to admit, or than the Allies were prepared to accept, once it had been decided that the complete military defeat of Germany and the Axis was the only plausible outcome to the war and that no negotiations with a putative post-Hitler German government would be possible. There was a wide range of resisters from the rigid and hopelessly naive intellectual Carl Goerdeler through top military leaders such as General Ludwig Beck, to more junior military figures who took decisive steps such as Colonel Claus Stauffenberg, instigator of the July 1944 bomb plot. In other walks of life, there were the religious dissidents such Dietrich Bonhoeffer and students such as Sophie and Hans Scholl. Some, especially before the war, opposed on principle removing Hitler by force, though most believed, or came to believe, that co-ordinated force had to be used. There were so many near misses and missed opportunities that are galling to read about; Hitler had the devil's own cunning as well in avoiding mishaps by often changing his itinerary at the last moment, and starting or ending speeches or visits earlier or later than planned. Overall, the internal German resistance was flawed in its often unclear strategy and tactics, but ultimately heroic and tragic. This book gives a lot of information, but I thought could also have slowed down the pace a bit to offer some more reflective analysis.… (altro)

The Elusive Dream: Higher Returns without Added Risk
Most conservative and moderate investors will tell you they seek increased returns without adding additional levels of risk to their portfolios.

They are not adverse to risk; they just seek to control it. In short, they seek to

1. Preserve spending power after both inflation and taxes.
2. Seek to avoid unacceptable market, liquidity and diversification risks.
3. Protect profits without loss of invested positions.

If you fit this investment profile, then Michel C. Thomsett has written this book for you. In it he demonstrates how carefully selected options strategies can help you consistently improve your returns without adding additional portfolio risk. Options, he argues, do not have to be exotic, high risk or complicated. In fact, they can be employed as a powerful tool to reduce risk.

He wisely sets his ground rules early in the book. They are:
1. Limit options activity to stocks you have pre-qualified.
2. Have faith the market with rise over time.
3. Accept the value of fundamental analysis.
4. If trade down, be prepared to add to your position.
5. Believe there are an adequate number of stocks which will meet your investment standards.

Thomsett’s book is well-written and illustrated – even if you are not familiar with options. In 255 pages he covers options strategies suitable for conservative investors. He includes covered call writing, contingent purchase strategies, rescue strategies to use when markets fall and combination strategies that produce cash to bolster current income.

If conservative and moderate investors remain true to their goals, options are a wonderful tool. However, Thomsett is experienced enough to acknowledge that deep in the heart of every market hedger is a speculator eager to spread his or her wings.

Stick with the author’s ground rules and you will avoid the market’s playground of temptations.… (altro)