Buy side slams vendor pre-trade models after April volatility shock - Global Trading

None of these models works well

For example, we have all read the axiom of ‘buy low and sell high’. I changed that to ‘sell low and cover lower’ and ‘buy high and sell higher’.

Some theorists have proposed that we should think of the stock market as constituting two processes in one.98 There is the signal track, the stock market of the 1950s that we read about in textbooks. This is the market that prevails in the long run, with investors making relatively few trades, and prices well tied down to fundamentals. It helps inv

So long as most traders are judged on the basis of short-term performance, bubbles involving large deviations of stock prices from their long-term values are possible—and perhaps even inevitable.

1. LPs too slow to react, VCs lack incentives to admit limitations in current processes


2. Poor quant performance 


3. Downturn in private markets 

Dan Markey, my mentor, had an interesting philosophy about fundamentals. He thought most fundamental news was nonsense. Dan had what he called the dominant fundamental factor theory, which postulated that, over an extended period, one to five years, there was one underlying fundamental factor that was the driver of the market. All the other news me