Robots vs. Advisors Ok! advisors might be inefficient but is it enough reason for the media wave against them. Agreed that evolution has to happen, and after the industry restructured broking, sized up researchers, and the equity sales, maybe it’s time to disrupt advising. One may argue that somebody has to take the responsibility for […]
I was in Mumbai recently, meeting fund managers to understand where India was on the smart beta road. How fast was investor education evolving? What was the appetite for ETF’s? And what should be done from the regulation point of view to take the Indian markets to the next stage? I don’t know how […]
A few of our readers might remember, ‘The frantic call index’. Once in a few years, we receive many anxious calls. What’s happening to China? Are we in for another 2008? Is it going to be worse than 2008? What do you think? What about Oil? Forecasting is a weak science, whether it is sentiment […]
Picture Source: Wikipedia Jules Augustin Frédéric Regnault was a French stock broker’s assistant who first suggested a modern theory of stock price changes in Calcul des Chances et Philosophie de la Bourse (1863) and used a random walk model. He is also one of the first authors who tried to create a “stock exchange science” […]
Inefficiency Searching for alpha is searching through inefficiency, because there are no super normal returns in efficiency. This seems intuitive and correct because there is cost to searching through inefficiency. And agents who spend that cost have to be rewarded for that effort. The case for inefficiency is unassailable. Subjective Inefficiency The case for what […]
Inefficiency Searching for alpha is searching through inefficiency, because there are no super normal returns in efficiency. This seems intuitive and correct because there is cost to searching through inefficiency. And agents who spend that cost have to be rewarded for that effort. The case for inefficiency is unassailable. Subjective Inefficiency The case for what […]
Intelligent System Over the post event dinner at the Princeton – UChicago quant conference, the conversation veered to the definition of an intelligent system. My co-speaker (a physicist) from the conference defined intelligent system as a system that is entropy reducing. Science and Markets Connecting entropy with intelligent systems was brilliant not only because we […]
Quantum physics may not seem much to have to do with risk and investing, but with subjects like psychophysics explaining the statistical behavior in psychological behavior, it’s just a matter of time that science could explain more of markets. John Gribbin’s biographic work on Schrödinger has a lot of jargon relevant for understanding universal behavior. […]
Quantum physics may not seem much to have to do with risk and investing, but with subjects like psychophysics explaining the statistical behavior in psychological behavior, it’s just a matter of time that science could explain more of markets. John Gribbin’s biographic work on Schrödinger has a lot of jargon relevant for understanding universal behavior. […]
In the emotional world ruled by story telling (Mackay in Madness of crowds); psychology and emotion remain the new bestsellers. This, of course, is a change from the economists who were forced to concede ground to the psychologists after a few hundred years when Daniel Kahneman became the first psychologist to get a Nobel Prize for economics […]