My reader [sic] complains that the OldProf is not offering any easy answers. He is too pedantic. The ideas are too complicated. Even if I point out errors that represent market inefficiency, there is no easy way to profit. Well — First off, I am writing down my observations about the market because there is […]
There is a dilemma in most stock market resesarch. One the one hand, any theory is hungry for data. It takes many, many cases to demonstrate a relationship with confidence. Complicating this is the idea that one should only look at part of the data, and use the rest of it for out-of-sample testing. Those […]
James Altucher’s book, Trade Like a Hedge Fund, was recognized by Barron’s a couple of years ago as the best investment book. There are many strong features of this work. I like it and enjoyed reading it. I will look at some of the specific strategies later and offer some comments. In the (unlikely) event […]
Thirty-five years ago a small group of students met in a seminar room in Ann Arbor. These students were planning careers that would lead into the quantitative analysis of public policy, an idea much in vogue at the time. Important public decisions might be made not just on the basis of politics, but on the […]
Since there is a long-term positive expectancy in equity investments, buying stocks is not a gamble in the normal sense — a lottery ticket, a trip to the track, or a basketball pool. Why do so many investment authors use gambling terminology and analysis? There are two very good reasons. Gambling activities often permit an […]