Archive for investment curiosities

2010 Nobel Prize in Economics vs Ig-Nobel Prize…On Economics Too, of Course

Everybody’s obsessed with finance and the flow of money these days. No wonder that we at go for the same theme and now wonder that the Nobel committees are looking at the same stuff.
This year the Nobel prize for economics was shared by three gentlemen. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2010 was awarded jointly to Peter A. Diamond, Dale T. Mortensen and Christopher A. Pissarides “for their analysis of markets with search frictions”. The guys looked actually at the imperfections of the markets – why are they not frictionless but full of hidden costs? Read more

A Book Review – “Harmonic Trading – Profiting from the Natural Order of the Financial Markets” – volume 1 by Scott M. Carney

There are various opinion currents in the technical analysis. One of the recent ones appeals to the natural order of the markets and to uncovering patterns which appear from time to time. This approach to technical analysis does not try to find models where there is none. Rather the natural order trading is trying to catch patterns as they emerge and ride them for the benefit of the trader. These things said, “Harmonic Trading – Profiting from the Natural Order of the Financial Markets” is a book which uncovers several such patterns for the benefit of the trader.

Scott Carney, founder and president of a company called (surprise surprise) “Harmonic Trading”, has studied quite a long time these patterns. His experience started with the Fibonacci approach, a trading method which uses the Fibonacci numbers to predict the most probable incoming price levels. This is a probabilistic approach and, like all the methods based on probabilities, it chases patterns where over the long term you are more likely to offset losses with your gains (rather than the other way around). Read more

Investments Advertising – No Money for Old Advice

guatemala-currencyI was a few days ago reading an advertisement from Fisher Investments (because it’s not worth I won’t bother to reproduce the link here).
The advertising said that if you have half a million portfolio, you should download free the latest report from a “famous” Forbes columnist. Read more

Are The CDO’s Regulated?

Collateralized debt obligations (CDO’s) have been named once by Warren Buffet as “financial weapons of mass destruction”. Are they? Read more

What Votes Can Do

Today, October 1st, the US Senate has voted finally the law which allows them to rescue the troubled stock exchange markets which they failed to oversee. The rescue plan, which would allow the Treasury Department to buy problem mortgage-related assets from banks, was the most important base for government action to unlock credit markets and ease a deeper economic downturn in the United States and abroad. Read more

Famous investing quotations – 2

This quotation was initially associated with forecasting, although it is also valid for the investing activities:

“Over the past 25 years, economic forecasters have missed four of the past five recessions.”
(Anonymous, Business Week, September 30, 1996)