<<I do believe that the VCs got the better deal and the public are probably mugs.>> A: No risk, no profit. VCs. take maximal risk, hence 100 time profit or...
3211
Objectifs +
daxelinxe
Nov 29, 2001 10:26 am
Stop loss § trailing stop Why not use the words stop loss comes from risk aversion and trailing stop to get the maximun of profit = greed. And don't ask me...
3212
Peter Locke
peterlocke_98
Nov 29, 2001 2:25 pm
Optimal obviously depends on the desires of the investor. Theoretically, the market portfolio is the optimal portfolio of risky assets. If you hold the ...
3213
Martin Sewell
martinsewell1
Nov 29, 2001 3:11 pm
... The investment horizon should not be relevant: Samuelson, P. (1963) Risk and uncertainty: A fallacy of large numbers. Scientia, 6th Series, 57, 1-6. ...
3214
Bob Bronson
bobbronson2001
Nov 29, 2001 3:54 pm
One gross approximation method is to assume return and risk is roughly proportional and gauge the risk (sigma, downside- volatility-risk measures, or whatever...
3215
Bob Bronson
bobbronson2001
Nov 29, 2001 4:33 pm
The market portfolio is always rebalancing, for example as reflected in S&P 500 turnover. Rebalancing is a major issue and cannot be wished away by naive...
3216
Ariel M. Viale
ariel@...
Nov 29, 2001 7:48 pm
Thanks Martin, Mathew Rabin in his anomalies paper with Thaler - have something to say against Samuelson's very popular fallacy...there are somewhere a post...
3217
Peter R. Locke
peterlocke_98
Nov 29, 2001 7:53 pm
Ariel, are we Aggies joining up now? What happened with the Texas game? ... From: Ariel M. Viale [mailto:ariel@...] Sent: Thursday, November 29, 2001...
3218
Ariel M. Viale
ariel@...
Nov 29, 2001 8:14 pm
Hi professor, It was not so bad... The score was something like 7-21 if I recall right ;-) if by joining you mean the bonfire ritual - is still under...
3219
Peter R. Locke
peterlocke_98
Nov 29, 2001 8:39 pm
Major confusion here, at least as seen by this naive theoretic. 10 shares of stock A, 10 shares of stock B. Prices change, portfolio changes. No rebalancing...
3220
HPB
bobbymilk92109
Nov 29, 2001 9:18 pm
Hello everybody, Nobody from the list answered me when I posted the following message. Maybe my wondering wasn't interesting but it is getting more and more...
3221
leif_ericssen@...
leif_ericssen
Nov 29, 2001 9:43 pm
Perhaps you should re-read my post saved below, Bob, because you seem to be refering to things I didn't say. If there was something unclear about what I wrote,...
3222
leif_ericssen@...
leif_ericssen
Nov 29, 2001 10:59 pm
(Speaking from the US) consumer staples and health care are not highly affected by a recession, but investors know that. Some banking and other financial...
3223
leif_ericssen@...
leif_ericssen
Nov 30, 2001 4:26 am
But index turnover rates are in single-digit percentages, no? And some stocks are replaced because the original stocks merged or folded or didn't fit what the...
3224
HPB
bobbymilk92109
Nov 30, 2001 6:47 am
Hello, That absolutely what I meant. I read a good book last year (French one) from André Orléan that deals with the "convention" approach: it is called "The...
3225
pgreenfinch@...
pgreenfinch
Nov 30, 2001 8:08 am
Thanks, HPB, Yes, Orlean writes good things. That leads to a question to the group: Has any sociological study been made on whether active stock players, ...
3226
pgreenfinch@...
pgreenfinch
Nov 30, 2001 8:21 am
Hi, all members ! I have anticipated this newsletter because of my availibility schedule. As usual, things will revolve about * a few stats, * some extravert...
3227
Bob Bronson
bobbronson2001
Nov 30, 2001 3:33 pm
Don't confuse "current" relative sales and earnings growth superiority with "future" stock prices. Such fully-recognized fundamentals cause overvaluation and ...
3228
leif_ericssen@...
leif_ericssen
Nov 30, 2001 3:44 pm
Guess I'm advised to play poker or British beauty contests with a French partner! :) I would think that some individual investors are intuitively gifted to...
3229
Peter R. Locke
peterlocke_98
Nov 30, 2001 3:45 pm
Herding may be rational...it works for the gazelle and the zebra. Relates to an efficient signal extraction and asymmetric information framework. If you know...
3230
leif_ericssen@...
leif_ericssen
Nov 30, 2001 4:17 pm
... J -Yes, I think that's understood in this thread, thank you. Such ... J-What do you mean by fully-recognized fundamentals? If you mean discounting...
3231
Bob Bronson
bobbronson2001
Nov 30, 2001 5:06 pm
Index turnover is well into double-digit percentages, and the reasons for dropping out are irrelevant to my rebalancing point, Jan. Index funds think it is a ...
3232
leif_ericssen@...
leif_ericssen
Nov 30, 2001 5:18 pm
That is a sound rational explanation for herding, especially as a description of the behaviour of firms in an industry (many industries, actually). In the...
3233
Bob Bronson
bobbronson2001
Nov 30, 2001 5:26 pm
Professional investors have long used "contrarian" indicators, which are mainly composed of attitudinal and position surveys from different investing cohorts...
3234
Bob Bronson
bobbronson2001
Nov 30, 2001 5:27 pm
No, Peter, multiple trades makes it trend-following since each trade has a similar bias, which is both immediately self-fulfilling, causing the trend, and ...
3235
Bob Bronson
bobbronson2001
Nov 30, 2001 5:44 pm
*********************************** My comments are interspersed below: ... From: leif_ericssen@... [mailto:leif_ericssen@...] Sent: Friday,...
3236
Peter R. Locke
peterlocke_98
Nov 30, 2001 5:45 pm
I did not introduce bias in my framework....I was discussing a disperse information idea, rather than common information, and trading being necessary to reveal...
3237
leif_ericssen@...
leif_ericssen
Nov 30, 2001 10:39 pm
Right, Bob, whatever you say - have a nice weekend! Jan ... luck! ... as ... profitable, ... since ... and ... firms ... Right ... Thanks ... help ... ...
3238
Bob Bronson
bobbronson2001
Dec 1, 2001 12:32 am
Right, Jan, and same to you! Bob Bronson Bronson Capital Markets Research ... From: leif_ericssen@... [mailto:leif_ericssen@...] Sent: Friday,...
3239
Bob Bronson
bobbronson2001
Dec 1, 2001 1:05 am
The bias that I pointed out is the result of the provable fact that virtually all trades are based upon at least some common information, especially with...
