Tag Archives: risk dimension

False Constructions

Any artist can tell you that the elements forming the work of art can be deliberately constructed to suggest the interpretation of it (which I refer to as addjective reality). Antecedents of objective reality can be constructed to appear out … Continue reading

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False Simulations

If you want to trade equities without any risk, for example, you can do a simulation, but you will not actually make any money. To actualize the fully assumed risk, you have to actually buy and sell the real thing. … Continue reading

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Hedging the Bet

Declining hedge-fund performance has been in the news because its cadre of canny experts charge big fees to manage the wealth of the nation. Looking at a chart, hedgee performance matches S&P returns over the last 20 years. Since, however, … Continue reading

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The Price Signal

The Fed says it is now reviewing its inflation forecast. Being data driven, and thus reacting to whatever the open market serves up, the Fed’s statement of probability has a causal identity, nevertheless. Price signaling is supposed to be illegal … Continue reading

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On the QT

It’s no secret, the Federal Reserve says it’s time for quantitative tapering. Reversing the QE program means the Fed will “run off” its book of assets. Fed activities are in large measure on the qt. Econometricians argue Fed operations are … Continue reading

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Run to the Store

The DOW has run 1000 points to a record high three times this year. It is now above 22k. Things must be great, but as many business analysts point out, equity values continue to run higher against slow GDP. The … Continue reading

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Managing the Mitigation

Looking at the data, the US economy is currently experiencing price deflation. The only thing up in price is pharmaceuticals, supported by the ACA. As the price of healthcare keeps going up, demand for everything else keeps going down. The … Continue reading

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