New Constructs的动态

If you've spoken to me in the last two years, you've heard me speak about what algos and passive investing have done to the market. A new paper just dropped that added a lot of nuance to that argument and I recommend checking it out, but here's a quick interview with the author: https://lnkd.in/gtDurv3a

Quants' growing ability to tailor strategies for complex investor preferences signals the dawn of a quant renaissance. Which factor approach—traditional or alternative—offers the best uncorrelated alpha and lower volatility? Read more in our latest insights. https://ow.ly/8aRb50T1Xs1

We all may be prone to different emotional biases that can affect the decisions we make as investors. Professor Hal Hershfield explains three examples—two “classic” biases and one newer, lesser-known concept. Being cognizant of how these biases can affect us as we think about our investments may help in avoiding costly errors. https://a.vant.is/3UdTCX5.

Exploring Momentum and Contrarian Strategies in Financial Markets Momentum and contrarian strategies represent two distinct approaches to investment and trading. Momentum strategies capitalize on the continuation of asset price trends, operating under the belief that assets performing well will keep gaining, while those underperforming will continue to lag. It’s about "riding the wave" of price movements. On the other hand, contrarian strategies focus on market overreactions. Investors using this approach aim to capitalize on deviations from an asset's fundamental value, often taking positions opposite to the prevailing market sentiment. In this agent-based simulation model, I'm investigating a crucial question: In a single-stock market (e.g., stock X) where participants employ either momentum or contrarian strategies, how long does it take for the number of buyers and sellers to reach equilibrium after a price change in stock X? Interested in learning more? Check out the details here :https://lnkd.in/gtp9fZzd

?? Market Volatility: Lessons from Howard Marks In his latest memo, Oaktree's Howard Marks offers invaluable insights on market volatility: The memo titled "Mr. Market Miscalculates" by Howard Marks of Oaktree Capital Management, addresses recent market volatility and investor behavior. Here's a summary of the key points: ## Market Volatility and Investor Psychology - The memo discusses the concept of "Mr. Market," introduced by Benjamin Graham, as a metaphor for market behavior. - It highlights the rapid market decline and rebound in early August 2024, triggered by various economic news and events. ## Factors Influencing Market Behavior - **Mood Swings**: The memo emphasizes how investor sentiment oscillates between extremes, affecting market prices. - **Cognitive Dissonance**: Investors tend to ignore or reject information that contradicts their beliefs. - **Contagion**: Market movements in one region can trigger similar reactions globally. - **Ambiguity in Interpretation**: The same economic news can be interpreted positively or negatively based on prevailing sentiment. ## Investor Tendencies - **Optimism and Wishful Thinking**: Investors often have unrealistic expectations and engage in "Goldilocks thinking". - **Short Financial Memory**: Investors tend to forget past mistakes, leading to repeated cycles of euphoria and panic. - **Lack of Immutable Rules**: The memo points out that there are no fixed rules in investing, unlike natural laws. ## Market Misconceptions - The document warns against imputing intelligence to short-term market movements. - It emphasizes that market prices often reflect investor sentiment rather than fundamental value. ## Advice for Investors - Avoid joining irrational market movements. - Understand market overreactions. - Form independent views on asset values. - Take advantage of Mr. Market's mood swings by buying low and selling high. #InvestingWisdom #MarketVolatility #HowardMarks Sources ? 2024 Oaktree Capital Management, L.P. https://lnkd.in/gpCUXVhx

Ready to level up your investment game? Our expert researchers at Pristine Gaze break down the secrets of stock analysis! In this video, the expert researchers at Pristine Gaze break down the essential steps to mastering stock analysis! Whether you're a beginner or seasoned investor, our team walks you through key techniques to evaluate stocks, identify trends, and make informed decisions in the market. Learn how to interpret financial statements, analyze company performance, and understand market indicators. Stay ahead of the curve with insider tips that can help you maximize your investment potential. Subscribe for more in-depth tutorials and expert insights from Pristine Gaze! Watch the full video and start making smarter decisions today!! #stockmarket #InvestingTips #PristineGaze #FinancialFreedom #USStocks #CanadaInvesting #WealthBuilding #StockAnalysis #MarketTrends https://lnkd.in/dA5Gknsz

Understanding the Explore-Exploit Tradeoff: A Guide for Investors

Just finished the course “Behavioral Finance Foundations” - Some of the information is debatable in my eyes but still good to understand anomalies in the stock market.??

PIK’s and LME’s keep popping up in the news but the relentless kicking of the can down the road doesn’t seem to register much with the “false prophets”. Those market economists that Andrew Hauser has upset so much, that do GDP and inflation forecasts on a spreadsheet for marketing purposes. I suspect the reason is that the “false prophets” think the “cycle” is about GDP growth or the labour market, rather than the long and short cycles of credit creation and destruction. You know, that phenomena that is the essence of the capitalist economy, that was once called creative destruction, and existed long before GDP data and inflation indices even existed. But since there is no role for credit creation in their models - being disciples of orthodox economics - this is understandable. And since most of the “false prophets” work for banks, or other financial institutions, they see no material issues. It is hard to see if you simply don’t look. After all, no orthodox economist saw the dangers of the embedded leverage in securitisation, did they? It was simply evidence of how “efficient” financial markets had become. So, the “false prophets” will keep playing with their silly forecasts of this and that, conclude that there is going to be a “soft” or “no” landing in GDP, and that the most aggressive tightening in monetary policy in 50 years will have no effect whatsoever, despite the biggest private equity and debt bubble in history.

There are two clear ways to invest: pick the right stock or pick the right time to buy a stock. The debate over fundamental versus technical analysis will rage on and many a famed investor has derided the latter, even though the former is far from ironclad. But does it need to be this way, Alex Newman asks. What if there was a way investors could marry the two together and juice extra returns out of their portfolios? In our latest Big Read, Alex explores whether or not this will work and what investors need to think about. Find out more here: https://on.ft.com/3wZNHgL