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Beyond Robo-Advisors
Ok! advisors might be inefficient but is it enough reason for the media wave against them. Agreed that evolution has to happen, and after the industry restructured broking, sized up researchers, and the equity sales, maybe it’s time to disrupt advising. One may argue that somebody has to take the responsibility for underperformance netted for…
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2000 – Ising, Non-Normality and Power Law Criticisms
Despite its popularity, the power law has not been without its failures and has rather come under criticism. In the paper ‘Scale-dependent price fluctuations for the Indian stock market’, Matia K, Pal M, Salunkay H, Stanley HE (2004), the authors explained how Indian stock market may belong to a universality of class different than that…
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Law of Ruin
Jules Augustin Frédéric Regnault was a French stock broker’s assistant who first suggested a modern theory of stock price changes in Calcul des Chances et Philosophie de la Bourse (1863) and used a random walk model. He is also one of the first authors who tried to create a “stock exchange science” based on a…
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The Duration Factor
John Rae’s inter-temporal choices explained the statistical nature of human behavior in 1834. However, despite the subject’s insight in the objectiveness of behavior, inter-temporal choices remains a peripheral science. This paper takes a sequential approach to question how inter-temporal choices could be behind human behavior, behavioral anomalies and even market anomalies. If these inter-temporal anomalies…
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Information Relevance
It was in 1968 that Ball and Brown considered the content of accounting information, the flow of information, the relevance of information, its predictive powers and its continuity and time dependence. The observed reversion was used as a validation of predictive content in earnings. This relevance was later shown to cause a drift, an anomaly,…
