The Inefficient Market Advantage
The world is messy and a more pro-active approach than the Market Portfolio Theory of the 60s is needed to build portfolios that can stand the stress of our times.
Tag: wall street
Wall Street Flash Crash Brings Re-evaluation of the Dangers of High Frequency Trading
In a recent blog post, adjunct finance professor Davide Accomazzo discussed the serious structural deficiencies that exist in our financial markets, and the liquidity vacuum that may result. On May 6, 2010, the stock market took a drastic dive, resulting in the second largest point swing and the biggest one-day point decline in Dow Jones … Continued
Beta(ful) Market Hypotheses
In my many years as a derivative trader and hedge fund manager, I forged a solid and long-lasting relationship with risk. Like a beautiful but dangerous woman, risk permeated my professional life—a constant courtship leading me to many attempts at fully understanding its mysterious ways. A never-ending effort! The theoretical foundations of risk analysis were … Continued
Welcome to a New “Normal” in Commodities?
Davide Accomazzo, MBA The telegraphed day of reckoning has finally arrived and many commodity exchange-traded funds (ETFs) and exchange-traded notes (ETNs) are now finding themselves in the regulatory line of fire. I have been on the record with my MBA students and with many of my colleagues in the investment business for quite some time … Continued
High Frequency Trading: The Rise of the Machines
Davide Accomazzo, MBA As a professional trader, you are confronted daily with all kinds of dynamics and situations that require a flexible and adaptive mind. You are faced with multiple variables constantly interacting with each other and your task is to process ever-changing information quickly and profitably. Valuations arbitrage, reflexive supply-and-demand dynamics, and structural changes … Continued
Why I’m Against the Bailout
The recently approved bailout is yet another attempt to prop up the markets with an election around that corner that will only delay and worsen the inevitable pain ahead… There is definitely a lack of trust and confidence in the markets, but it is due to the blatant lies and unethical representations. How many … Continued
America’s Financial Crisis
The United States is facing the greatest financial crisis since the Great Depression. Financial institutions are failing, as is confidence in the financial system. U.S. Federal Reserve Chairman Ben Bernanke and U.S. Treasury Secretary Henry Paulson have testified that Congress must act immediately to bail out troubled financial institutions, or we could face a financial … Continued