Following the crowds won’t get you there
After a couple of hours spent on a certain report or analysis I usually take 5 minutes to browse through my favorite news and finance sites to update on recent events and financial developments.
This week, to my surprise, a familiar face looked back at me from the home page of one of the most prominent financial websites around. Even more astounding was the fact that this person, once a good friend of mine, was chosen to be one of the most promising entrepreneurs in Europe.
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Are valuation and risk measurement models as the root of all evil?
In this crisis we witnessed a broken market. Financial institutions relaying on complex financial models for both valuation and risk management suffered heavy losses and saw their methodologies break before their eyes.
Many valuation models and risk models literally stopped functioning and started spewing out numbers that seem to have no real connection with reality and stock market prices.
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I Just returned from spending two working weeks in Manhattan, one of mankind’s most amazing creations. I’d like to share 7 observations I’ve had during my visit.
The accomplishments of mankind
Walking around Manhattan I always feel humbled by the achievement represented by this small island. I love the moment the skyline reveals itself as the taxi approaches and the feeling of driving through the streets of Manhattan for yet another time.
Looking into the notion of the western financial markets as a big pyramid scheme
I’m sure many of you are familiar with the tale of monkeys and villagers that cleverly demonstrates certain aspects of the stock market. Here’s a short version for those of you who aren’t.
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