About His InterestQuotes from Great Investors
...risk certainly does follow patterns...
"…risk certainly does follow patterns that can be expressed mathematically and can be modeled on a computer."
The (Mis) Behavior of Markets: A Fractal View of Risk, Ruin & Reward.
Benoit Mandelbrot & Richard L. Hudson. Basic Books, New York.
A stock price rises not because of good news...
"A stock price rises not because of good news from the company, but because the brightening outlook for the stock means investors anticipate it will rise further, and so they buy..."
The (Mis) Behavior of Markets: A Fractal View of Risk, Ruin & Reward. Benoit Mandelbrot & Richard L. Hudson. Basic Books, New York
As to liquidity:
Pg. 71 Speaking of itself the Fed released this statement: “The Federal Reserve Board… will…provide liquidity as necessary to promote the orderly functioning of the financial system.”
William D. Cohan House of Cards: A Tale of hubris and Wretched Excess on Wall Street.
Knopf Doubleday Publishing Group, New York.
…bubbles and crashes are inherent to markets.
…bubbles and crashes are inherent to markets.
The (Mis) Behavior of Markets: A Fractal View of Risk, Ruin & Reward. Benoit Mandelbrot & Richard L. Hudson. Basic Books, New York.
Dick Bove…
“ a bailout of Bear Sterns…absolutely necessary”.
“If Bear Sterns had gone under, it would have forced all securities firms… to the financial equivalent of mutually assured destruction.”
“The Fed had no choice but to bail out Bear Sterns. ”
William D. Cohan House of Cards: A Tale of hubris and Wretched Excess on Wall Street.
Knopf Doubleday Publishing Group, New York.
Donald Rumsfeld states:
" There are known knowns. These are the things we know that we know. There are known unknowns. That is to say, there are things that we know we don’t know. But there are also unknown unknowns. These are things we don’t know we don’t know. " This is applicable to the dynamic… environment of trading.
Hamzei Fari (Chapter written by Jeff DeGraaf).
Master Traders: Strategies for Superior Returns from Today’s Top Traders Hoboken,
New Jersey: John Wiley & Sons, Inc.
Great investments tumble, and with them the fortunes
"It would be simple to run down the list of hundreds of stocks which, in my time, have been considered gilt-edged investments, and which today are worth little or nothing. Thus, great investments tumble, and with them the fortunes of so-called conservative investors in the continuous distribution of wealth."
How to trade in stocks. Jesse Livermore. Duell, Sloan & Pearce. New York. 1936
If (trading or investment) advantage is coming from reading the newspaper...
“ If (investment) advantage is coming from reading the newspaper, watching the television, or any other easily accessible source… your advantage is likely to prove illusory. ”
Hamzei Fari (Chapter written by Jeff DeGraaf).
Master Traders: Strategies for Superior Returns from Today’s Top Traders Hoboken, New Jersey: John Wiley & Sons, Inc.
Meredith Whitney
“A company is only as solvent as the perception of its solvency.”
William D. Cohan House of Cards: A Tale of hubris and Wretched Excess on Wall Street.
Knopf Doubleday Publishing Group, New York.
Nassim Taleb says...
“Of the five hundred largest US companies in 1957, only seventy-four were still part of that select group… 40 years later. ”
Nassim Nicholas Taleb
The Black Swan: The Impact of the Highly Improbable Random House, New York.
The (Mis) Behavior of Markets
Dice fall by chance. Roulette wheels spin by chance. But IBM shares (and all other market components), the euro-dollar exchange rate, and wheat prices do not rise and fall by the mathematical rules of chance. Indeed, they do not--but they can be described as if they do. And that subtle distinction, of thinking about price as if they were governed by chance, has been the dominant, fructifying notion of financial theory for the past one hundred years.
The (Mis) Behavior of Markets: A Fractal View of Risk, Ruin & Reward. Benoit Mandelbrot & Richard L. Hudson. Basic Books, New York
The Crash and the Great Depression
“ by 1929, much of the money that was invested in the stock market did not actually exist. ”
(2000, http://us.history.wisc.edu/hist102/lectures/textonly/lecture18.html),
Stanley K. Schultz and William P. Tishler of the University of Wisconsin
“The Crash and the Great Depression”
The probability of being right
“ If there is an 80 percent probability of being correct in any one assumption, yet the final output of the model is dependent on three such assumptions or variables, the probability of being right collectively begins to approach a coin flip scenario of 50 percent. ”
Hamzei Fari (Chapter written by Jeff DeGraaf).
Master Traders: Strategies for Superior Returns from Today’s Top Traders Hoboken,
New Jersey: John Wiley & Sons, Inc.