Quant trading insights

Interesting interview: explaining how quants help to drive teh downward spiral during the global financial crisis (GFC). That is a useful warning for the future. how quant fund strategies are evolving. "Any data you can think of, you can now acquire ..... and we now have cheap processing power and cheap storage, to data mine that data, to drive quant fund strategies." https://soundcloud.com/bloombergview/matthew-rothman-talks-quant-land-and-springsteen Bloomberg View columnist Barry Ritholtz interviews Matthew Rothman, the head of global quantitative equity research at Credit Suisse and a senior lecturer in finance at the MIT Sloan School of Management. He was hired a few years before the f

Central bank money printing since GFC

How much money have central banks printed since the Global Financial Crisis (GFC)? The reason it is important to understand this, is because central bank money printing (monetary inflation in Austrian Economics terms) has caused massive asset price inflation since the GFC. Austrian Economics argues this is cause and effect. Note: Changes in the size of central bank balance sheets = the amount of money they have printed. So if central bank money printing has caused "asset prices" to rise, it should be expected that when banks start "normalising monetary policy" by starting to withdraw all that printed money from the system, "asset prices" would fall. So farover the last week, the US Fed has

Deutsche - the Next Crisis because "build-up of debt without parallel"

In this 94 page 18th September report, Deutsche Bank conclude a new crisis is a certainty - only question is when and its form. "The authors hold that the move to currencies backed by governmental fiat rather than the supply of gold being extracted from the ground has enabled a build-up of debt without parallel." If the 94 pages of the report, put you off, there are a range of articles in the media. The Financial Times article here is worth a read. https://www.ft.com/content/52c33d8a-9f71-11e7-9a86-4d5a475ba4c5 This same article was reprinted in the AFR yesterday. See article here: http://puzzlefinancialadvice.com.au/2017/AFR/170925_AFR_Time_spent_thinking_about_the_next_financial_crisis_is

Why USA will have another crisis - Robert Gay (ex US Fed)

At the Portfolio Construction conference 23-24 August, Robert Gay gave his reasons why another crisis is on its way for the USA. His thoughts included the following: Next crisis will hit investments with limited liquidity very hard. Robert clearly had the view, that it is inevitable that we have another crisis. US asset prices high ... in response to rapid growth in monetary base in the USA. Inequality - Robert sees inequality (major divergence of financial health of the wealthy vs the rest) as a key reason why GDP growth in countries like USA, UK, Australia as being so low/weak. Potential catalysts for the next crisis: CLOs - Collateralised Loan Obligations (I sent a circular around about

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