Monthly Archives: May 2012

391 Auctions

Jason Zweig of the Wall Street Journal has an interesting piece up called Could Computers Protect the Market From Computers?  I appreciate Jason, he writes a lot of intelligent stuff, and had the guts to revise one of my favorite books, “The Intelligent Investor.” We are talking about positive feedback loops, where computers amplify the […]

Sorted Weekly Tweets

Market Dynamics   Go Your Own Way: Correlation Breakdown in the Market http://t.co/3Zwpx3kB @japhychron hints at deterioration in US stocks as USD strengthens May 26, 2012 RE: To me it implies that conservative HY investors are running out of places to put money.  Yellow flag. http://t.co/eUSRq8dY May 25, 2012 Vanguard Closes High-Yield Fund — ETF […]

The Rules, Part XXXII

Dynamic hedging only has the potential of working on deep markets. Arbitrage pricing can reveal proper prices in smaller less liquid markets if there are larger, more liquid markets to compare against.  The process cannot work in reverse, except by accident. The recent case of JP Morgan’s hedging activities bring to light an observation that […]

Little Things are Important

One of the problems with many politicians, journalists, financial analysts, economists, etc., is that they don’t think systematically.  Go back to late 2006, when I wrote my piece Wrecking Ball Looms for Big Housing Spec, which was regarding the coming subprime crisis.  (Note: my editor often retitled my pieces; my original title was more circumspect.)  […]

Book Review: The Alpha Masters

  This book has just been released.  I got an early copy.  The book is interesting enough that I would like to do a Q&A with the author, and I have contacted the PR flack to do so. To the review: Would you like to understand the mindsets of a variety of successful hedge fund […]