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Well, in an ideal world where all of the stock performance is explained by the broad market, you would be steadily rebalancing this portfolio.

I am pretty sure this some sort of a pass-through investment scheme. They charge 2.5% commission from the homeowner (plus, I am sure there are all sorts of little hidden fees), plus charge something from the investors (most probably charge a scrape on the assets). The home owners provide their...

So as the stock analysts say, it's a "mosaic approach", there is no real tell-tell sign? Interesting. How reliable is that? Some stuff is random. Some is an obvious giveaway but takes a bit of analysis. Some has to be very hard to know.

Fascinating. To give you some context, me and a couple friends were upstate this week. We were passing by an open house at some semi-posh cottage and decided to take a look. That’s when things got interesting. The real estate agent was literally zooming in onto myself and a another person...

Yeah, what else could it be? The whole “volatility tax” idea is kinda interesting. Conceptually, if you would believe that 100% of any stock variance is explained by the general market you should be able to short high beta stocks, go long low beta stocks and lock in the excess mean reversion...

I won million dollars playing a lottery this year! Ok, so not a lottery but a poker game. And not a million but about 20 bucks. And I lost, not won. That's all details. Does running an HFT book count as day trading? :p

Some of us did :) There is definitely a fair number of people that read a book or subscribe to a service and expect to become millionaires any day. There is also a fair number of people that go into this business with realistic expectations. The former fail miserably. The latter do have some...

You income estimate for a professional trader are way too low unless we are talking exclusively about people that are self employed and trade for their own account I think professional success rates are more or less the same in investments as in any other high end skilled profession The...

"Those are my principles, and if you don't like them... well, I have others." - Groucho Marx

I thoughts so too, but apparently they could. It's a neat party trick, but I wonder how they develop that sense.

Some years ago I met a guy that was buying gold coins. His argument was something along the lines of "when the apocalypse comes, I will be able to trade these things for canned food and rounds for my AK-47". Needless to say, he could not explain why he would not stock up on the said canned food...

A lot of financial assets are based on faith. Purchase of the US dollars is statement of faith in the US government. Purchase of gold is a statement of faith in the universal acceptance of shiny gold metal. Neither is guaranteed to be true forever, but we continue to believe :)

Gold?

How do salespeople and other "relationship" people guess what is the spending power of the person in front of them? It can't be the car, clothing or the accessories, cause that stuff is very random (in fact, in the instance that prompts me to ask these indicators were pointing in the opposite...

Not lately. I should change that, I think.

Yup, I did :)

Forget the yield curve. I want pie.

It would be nice if you had a legend there. I assume the horizontal “dash” is a weighted mid? Ps. Looks like a joiner algo type of setup.

Again, I cannot remember exactly, but it was small credit as compared to risk. Based on the sell side color I got, it’s a large real money player (SWF, by the looks of it) hedging his book of equity.

Obviously, there is no official definition, but in general you’d say “I am hedged” if you have somehow reduced your variance without a significant decline in your alpha. Since in most spread trades you would not be able to clearly distinguish which one is the alpha leg, it’s hard to make that...