Mark to Model?

[jk]

Re: Mark to Model?

"we haven't formally backtested this"

what does that mean?

............lol

[jk]

Re: Mark to Model?

Back-testing means to go over a database of share prices and see how a theoretical investing strategy would play out.

It has to be taken with a huge grain of salt, since in reality, to trade is to effect share prices. This "participant observer" effect inherently causes some level of divergence from theoretical performance, which reaches an extreme when whatever strategy being back-tested actually becomes popular. Then it begins to move the market, typically undermining its own worth.

The "Dogs of the dow", "foolish four", and a number of other famous and simplistic strategies have fallen prey.

In fact, the same has happened to highly-leveraged programme trading by hedge funds and proprietary trading desks of money center banks. If everyone is doing highly-geared statistical arbitrage... it stops working so well, just like any other strategy.

aaron, please. metalman, i believe, meant to imply something like testing while on one's back.:rolleyes:

edit: now i've read further in the thread and i see that grg55, at least, got the message.

[dbarberic]

Re: Mark to Model?

More news:
In the new Jay-Z video, he is shown flashing stacks of 500 Euro notes instead of US Dollars. I guess the latest status symbol for bling-bling rappers is to own Euros.

http://news.agendainc.com/2007/11/01...g-a-recession/


I can only imagine all the inner-city youths taking their dollars and exchanging them at the airport money booth, so that they too can be just like Jay-Z, flashing Euros.

[jk]

Re: Mark to Model?

More news:
In the new Jay-Z video, he is shown flashing stacks of 500 Euro notes instead of US Dollars. I guess the latest status symbol for bling-bling rappers is to own Euros.fficeffice" />:p>:p>
:p> :p>
http://news.agendainc.com/2007/11/01/is-jay-z-signaling-a-recession/

:p>Seems to be going mainstream now.:p>

we need a business week or economist cover, or better yet a time magazine cover on a par with the "home $weet home" cover in june of '05, in order to call the top on the euro.

[necron99]

Re: Mark to Model?

Meanwhile, the latest stupid pet trick of modern finance is revealed by a contact who runs a fixed income fund in the high ten figures.

Necron99 channelling most mainstream economists:

"No! No! Don't you see! The cat isn't falling, he is levitating above the water due to sheer investor confidence in the Stock Market. Sheer investor confidence in the $US Dollar."

The phrase "Tinkerbell Strategy" was coined to discuss Iraq, but it has economic implications as well...

[KeithOK]

Re: Supermodel Bundchen Joins Hedge Fund Managers Dumping Dollars

Back off, mate!

She's my age, and we agree on financial strategy ... ::swoon::

Bad new, unless you're Tom Brady (see "wedding bells" at end of article):
http://www.suntimes.com/entertainmen...R-zp06.article

[Guest]

Re: Mark to Model?

JK -

Everyone really appreciated this topic. Got any more mark to model examples we can analyze?

[GRG55]

Re: Mark to Model?

JK -

Everyone really appreciated this topic. Got any more mark to model examples we can analyze?

One with an accompanying photo that's more appealing to Jim, please...

[Rajiv]

Re: Mark to Model?

Paul Craig Roberts has chimed in on this one

The End Is Near!—Gisele Bundchen (Pictures Supplied) Dumps Dollar

The US dollar is still officially the world’s reserve currency, but it cannot purchase the services of Brazilian super model Gisele Bundchen. Gisele required the $30 million she earned during the first half of this year to be paid in euros.

Gisele is not alone in her forecast of the dollar’s fate. The First Post (UK) reports that Jim Rogers, a former partner of billionaire George Soros, is selling his home and all possessions in order to convert all his wealth into Chinese yuan.



Meanwhile, American economists continue to preach that offshoring is good for the US economy and that Bush’s war spending is keeping the economy going. The practitioners of supply and demand have yet to figure out that the dollar’s supply is sinking the dollar’s price and along with it American power.

The macho super patriots who support the Bush regime still haven’t caught on that US superpower status rests on the dollar being the reserve currency, not on a military unable to occupy Baghdad.

If the dollar were not the world currency, the US would have to earn enough foreign currencies to pay for its 737 oversees bases, an impossibility considering America’s $800 billion trade deficit.

[GRG55]

Re: Mark to Model?

Paul Craig Roberts has chimed in on this one

Well we know her opinion of the bonar. Has anybody thought to ask her view about...um...asset bubbles...