LATEST BLOGS

Most Trading Strategies Are not tested Rigorously Enough

Financial research is highly prone to statistical distortion. Academics have the choice of many thousands of stocks, bonds and currencies being traded across dozens of countries, complete with decades’ worth of daily price data. They can backtest thousands of correlations to find a few that appear to offer profitable strategies. The paper points out that…

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Unintended Consequences

As a member of Empty Jets I noticed something similar the moment the mining infrastructure boom came to an end. Demand for private flying surged along. General-aviation operations at Midland International Airport jumped almost 10 percent in 2014, according to data reported to U.S. regulators. Now, private aviation’s role as canary-in-a-coal-mine is being watched closely…

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The Great Superannuation Exodus

According to the Sydney Morning Herald there has been an exodus of funds from large superannuation funds into self managed funds. The number of people with DIY super funds has grown by more than 30 per cent during the past five years to more than 1 million, collectively worth, in December last year, a whopping $568 billion.…

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YTD Performance

I posted the following graphic in the Charts of Interest. However, I feel it deserves a more expanded examination. In the years following the GFC the domestic market has lagged markedly behind other world markets. The shock of the GFC has had a profound impact upon the psyche of investors – that combined with a rampant…

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Your Brain Is Primed To Reach False Conclusions

Helena Matute, a psychologist at Deusto University in Bilbao, Spain, and her colleagues enlisted 147 college students to take part in a computer-based task in which they each played a doctor who specializes in a fictitious rare disease and assessed whether new medications could cure it. In phase one of the study, the student volunteers…

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What Is This Telling Me…Sweet FA

I snipped the graphic below from Bespoke the folks who produce countless and mostly points charts on the market.  It compares the percentage change in the S&P500 to date with the first six months of 2014. The chart above attempts to draw a comparison between the initial portion of this year and the same period last…

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A History Lesson

I am a history buff – the thing that fascinates me about history is that you can see the same patterns of behaviour repeated on a macro and micro scale over and over again. As an example I ran into a past member of our mentor program sometime ago at the opera and we had…

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Fake Hedge Fund Manager Fakes Death Using Fake Assistant

He never made real investments with funds, instead using the money for personal use, authorities said. To keep his companies going, he issued false earnings statements. “By pretending to be a successful hedge-fund manager, Malik conned investors into bankrolling his lavish lifestyle,” Andrew M. Calamari, director of the SEC’s New York Regional Office, said at…

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