Paper Assets | wealthymatters

On Index Funds

January 21, 2016 Leave a comment

wealthymatters Index funds are based on the random walk theory. The proponents hold that it’s impossible to outperform the market without assuming additional risk.

Critics of the theory, however, contend that stocks do maintain price trends over time – in other words, that it is possible to outperform the market by carefully selecting entry and exit points for equity investments.

Four hundred seventy-three million to one. Those are the odds against George Soros compiling the investment record he did as manager of the Quantum Fund from 1968 through 1993. His investment record is the most unimpeachable refutation of the random walk hypothesis ever!

Filed under Paper Assets, Theory Tagged with George Soros, Index funds, Mutual Funds, postaday, Quantum Fund, Random Walk Theory

The Alchemy Of Finance

January 21, 2016 Leave a comment

Filed under Paper Assets, Theory Tagged with George Soros, postaday, The Alchemy Of Finance, The Theory Of Reflexivity

Look For Judgement

January 13, 2016 Leave a comment

wealthymatters About a week back I was pitched an algo trading scheme that was offering a mostly 12%+ return monthly. There were the past performance figures, with even the odd slip-up.

At the point I was put off by the fact that a bot would have access to by trading account. It seemed a risk not worth taking.

Moreover, I had not the experience to know what are normal returns from futures trading.

On Saturday last, I had lunch with a friend who owns a stock broking firm. And he was willing to offer a guaranteed 20% return per year only. Anything more in his opinion would be undoable/too risky and likely to bankrupt any broking company.However his was manual trading, not algorithmic trading. Read more of this post

Filed under Paper Assets, Theory, Tool Kit Tagged with algo trading, Fischer Black, futures trading, judgement, Long Term Capital Management, money managers, Myron Scholes, postaday, Robert Merton

How George Soros Made Over A Billion Dollars On One Day

January 12, 2016 Leave a comment

Here’s the video to watch if you’d like to know how George Soros broke the Bank of England, and made over $1Billion in the process ,on 16 September,1997.