Archive for September, 2014

Fool me once, shame on me. Fool me twice…

Posted on Sep 26, 2014 by .

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0926spx

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p83257770514&a=266398464

The little downwave (or downwavelet) of early September puzzled us somewhat as we took it at first as an a-b-g-z (or a-b-c in Elliott speak) formation.  But then the b wave took off and we thought that was the end of that.  Well maybe it wasn’t.   The lurching downwave of the last six days might be the c (g) wave we looked for.  The heightened volatility over this time is discomfiting and may lead to worse price erosion.  Of course, to keep the context in perspective, we are barely 2% off a record high.

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Hajibaba…

Posted on Sep 19, 2014 by .

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Don’t be the greater fool.

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A compensation scheme disguised as an investment strategy: hedge fund

Posted on Sep 18, 2014 by .

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In the news, Calpers dumps its hedge fund investments.  Reason, expensive and underperforming.  A witty c0lleague of ours (lamentably we’ve buried his name –we always like to give credit) remarked that hedge funds were a compemsation scheme disguised as an investment strategy, and that appears to be true.  Take away the front running and the insider information and the HFT tricks and corporate extortion and what do they have? Performance trailing the market.  In sum they are just a bunch of guys who had a lucky hit once, got the reputation as geniuses and cashed in by forming a hedge fund.  There is even some question about their skills.  They underperform in one of the biggest bull markets in history?

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