We Need More Heavy Lifters
This is the S&P500 % of stocks above there 200 week moving average. Hard to sustain new highs when there is not a lot of action in the underlying stocks.
Vampire CEO’s
There is no rational basis for these phenomena “A major study by the economists Xavier Gabaix and Augustin Landier, who happen to believe that current compensation levels are economically efficient,” writes the New Yorker, “ found that if the company with the 250-most-talented CEO suddenly managed to hire the most talented CEO its value would increase…
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Killing the Myth About How Hedge Funds Generate Alpha
Intriguing piece since it is based upon the assumption that hedge funds actually generate alpha. An assumption that seems a little tenuous given the chronic underperformance of hedge funds. The genesis of this myth comes from the insider trading scandals of the 1980’s, leading to one of the most famous movies about financial markets of…
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Samurai Trader
Homma is rumoured to have made the equivalent of $10 billion in today’s dollars trading in the Japanese rice markets. In fact, he was such a skilled trader that he served as an important financial advisor to the Japanese government at the time and was later raised to the rank of honorary Samurai. I don’t…
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Charts Of Interest 17/05/15
S&P500 New Highs Only Link – Time inc
Careful Who Your Family Members Are
Not surprising since there is some evidence that eating disorders may be socially acquired. It is therefore not a stretch to imagine that other forms of psychological trauma can be based around the family unit. Anxiety is ‘contagious’ and can be passed from parents to children and the other way, a new study finds. The…
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How to Go Broke In Style
I have to admit the amount of money some folks can go through in a very short period of time is quite amazing…. Over 60% of NBA players reportedly go broke within five years of retirement. Iverson, who retired from the NBA in 2010, fell right into that trap. In his heyday, Iverson had expensive…
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Outsmart Your Own Biases
……..It can be dangerous to rely too heavily on what experts call System 1 thinking—automatic judgments that stem from associations stored in memory—instead of logically working through the information that’s available. No doubt, System 1 is critical to survival. It’s what makes you swerve to avoid a car accident. But as the psychologist Daniel Kahneman…
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