3 ms·
I used to work on a team mixed of economics PhDs from Yale/Princeton/Harvard and with Phd Mathematicians. I know what economics is. All the best hedge funds are
by logicslave 6y ago
I used to work on a team mixed of economics PhDs from Yale/Princeton/Harvard and with Phd Mathematicians. I know what economics is. All the best hedge funds are run by either math people or ruthless business men who cheat/activist invest/have non public information.
Also, the FED is in the process of destroying the US dollar and hyper inflating all the assets. Everyone but the capitalists are getting poorer.
The "Chief Economists" of many major US banks dont even hold economics degrees. People arent rational actors that you can plug into a math equation.
"If finding these smaller scale strategies requires expertise, then the expert probably has better things to do with their time. I suppose that holds to arguing with idiots on Hacker News."
Theres alot of friction of getting data to analyze, developing a strategy, executing the strategy, paying fees, managing risk, hedging. If you know how to do all that, you are probably already employed in that capacity or you run your own fund. But yes, if youre smart you can find an edge. Theres a ton of small man shops in NYC with 5 million in capital where everyone makes 600-1M a year.
- xapata 6y ago> friction ... if youre smart you can find an edge > easy money laying around There's a bit of dissonance between the way you've characterized this process in different comments. That's my point. "Hey, there's a dollar lying on the ground!" "Can't be. Someone would have picked it up." > destroying the US dollar and hyper inflating all the assets Sounds like a good strategy to bring manufacturing back to the US. They've said the new policy is high employment.
- logicslave 6y ago"Hey, there's a dollar lying on the ground!" Found the efficient market hypothesis believer, classic failing of economic theory. Theres no alpha in the stock market!!!11!! If there was the completely efficient allocation of human capital, access of information, opportunity cost would strip it out so fast!!!
- xapata 6y agoYep, indeed I am. The same way I think casinos don't mind if you try to count cards at blackjack.
- marketgod 6y agoHe said it pretty clearly. It's easy money if you look at it and work at it. The issue is most people don't have enough capital to try or don't have the balls to follow through. I've had many try my system and they can't hold the hard times.