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Idly I've wondered if there was a way to turn the efficient markets model on it's head. Rather than gathering a ton of predictive information to try and get ano
by johngalt 15y ago
Idly I've wondered if there was a way to turn the efficient markets model on it's head. Rather than gathering a ton of predictive information to try and get another 2% efficiency, instead use the already efficient market activity to predict other things. For instance if oil prices drop GM should start ordering more V8 engine parts instead of I4. I'm sure this already happens at some level.
- eru 15y agoYes. The Economist often quotes the prices of insuring against default of a creditor (like Greece) as an indicator of how likely they are to go bust.