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What went wrong? In 1999 the relatively poor and 'emerging' economies of Ireland, Portugal, Spain and Greece abandoned control over their own monetary policies, and instead adopted the monetary policy of an already wealthy, but slow growth economy called Germany. This is also referred to as...

Already done. http://www.ockhamresearch.com/know-your-stocks/crowd-sentiment/

Good news for the UK economy. Nothing stimulates the economy quite like a Royal wedding.

This is what the Brits and Japanese used to say to justify their property bubbles - before they popped. If supply shortages was the issue, then rental prices would have moved up in step with property values. In fact, rental prices are a much better indicator of the true long term...

This is all very convincing, but I do have one question. If retail investors can't 'play' at the sub penny level, then who's taking the other side of all of those sub penny stop loss trades?

Again, simply not true. I'd suggest you get yourself a little more knowledge and a little less opinion. There was broad international and regional support for the first Gulf War against Iraq. In truth nobody knows what the outcome would have been, but for a variety of reasons, a war back...

This is a complete BS rewrite of actual history. If Bush Snr. had finished the job in the first Gulf War and taken out Saddam back in 1991, the US wouldn't have been forced to maintain bases in Saudi Arabia for the next 9 years. That was one of the main grievances that Al Qaida used to justify...

Remember Donald Rumsfeld's "Unknown unknowns" quote? "There are known knowns; there are things we know that we know. There are known unknowns; that is to say, there are things that we now know we don’t know. But there are also unknown unknowns; there are things we do not know we don’t...

But there's no obligation if the attached revenue stream dries up. ie the issuer doesn't necessarily go into default for missing a payment. I realize it's not exactly the same as dividends on common stock in respect to legal rights and obligations, but the payments of both are linked to...

Under that definition, "Revenue Bonds" would be equity?!?! What I'm trying to point out, is that the distinction between debt and equity isn't as clear cut as you might think. From the issuing firm's perspective they are just different sources of capital with different associated costs.

This is totally irrelevant to the OP, but out of interest, how do you define "Preferred stock"? Debt or equity, or both, or does it matter? Or do you simple not buy into companies that issue it?

That's Taleb's whole point, mortgage securitization is the brainchild of portfolio theory. We all know that lending some random douchebag you don't know $100k to buy a house would be really dumb. We just wouldn't do it. But according to portfolio theory, if you pool your $100k with...

Simply calculate your stats on the % PnL rather than the $ PnL

I've looked at the Australian, UK and HK markets. My conclusion was that is was just too expensive. 1. Brokerage/exchange fees/taxes are too high. 2. Limited liquidity means wider bid/ask spreads.

From the UK's Daily Mail: Tumbling-tower-China-Amazing-pictures-13-storey-block-flats-toppled-over http://www.dail*****.co.uk/news/worldnews/article-1196064/Tumbling-tower-China-Amazing-pictures-13-storey-block-flats-toppled-over.html

You made 7.9% on the long side and 3% on the short side. Congratulations on that, but surely your return on capital invested is only 5.4% (average of the two). Had you used 100% leverage in the trade, then your return on equity would be 10.8%

You suggesting that it was Lescor's chubby fingers getting stuck on the P and G keys?

So you're effectively chasing black swans. Inspired by the Michael Berry story in Vanity Fair, I actually looked into testing something very similar to your system last month. (His early Scion Capital quarterly newsletters are well worth reading). He appeared to use P/FCF as his main...

I would agree with a lot of what you say here. Pair trading can feel a bit like writing OTM options, a fixed and pre-known upside and an open ended and unknown downside. The exact opposite of what a good system should be. But on the other hand, it is a system based on sound logic that gives...