The Investors – Behavior Gap

History shows that mutual fund investors generally increase inflows after observing periods of strong performance. They

Beach PL - Generation Gap

buy at high prices when future expected returns are lower, and they sell after observing periods of poor performance when future expected returns are now higher.

This results in what author Carl Richards called the “behavior gap,” in which investor returns are well below the returns of the funds in which they invest. Perhaps with this observation in mind, Warren Buffett once said, “The most important quality for an investor is temperament, not intellect.”  Continue reading “The Investors – Behavior Gap”

Management reaction during CRISIS

English: The Business Process Management Life-...

Every time I read Traders Guns and money there are new things to explore.

The management of the firms is a succession of fads during trouble times, just like the recent and ongoing crisis. The Fads become a mixture of homely common Rusk package as science and in comprehensible.

Diversification Lets do several things that we don’t know anything about badly
Sticking to the knitting or focus Lets get back to doing what we once did if any body can remember what it is and how to do it J
Decentralization Massive duplication, confusion and creation of thousand of petty empires
Matrix structure Every body reports to every body, no body knows who they work for & there is no accountability
Flat Organization Managers who can not manage now manage tens of direct reports.
Business Process reorganization A process by which cut everything that is essential, leaving only every thing that you don’t need.

Not to forget lot of buzz words like CRM/KPI/TQM/B2B/B2C/Transformation/best of breed/competitive advantage/reinvention/templates.

IBM Cognos Real-Time Monitoring Certification Exams

This IBM exam is designed to provide certification for Real-time Monitoring developers. These individuals are in charge of the configuration, modeling, and maintenance of IBM Cognos Real-Time Monitoring applications. Individuals with this type certification will be newer to this area but will still be able to function effectively in this position and as members of teams.  Continue reading “IBM Cognos Real-Time Monitoring Certification Exams”

Derivatives Monster

Was going through derivative material universally available  and find some interesting facts the (TBTF) Too Big To Fail get Too Bigger To Fail. The top 5 banks of the world holds 97% approx $221 trillion derivative outstanding.

$220 trillion is more than enough for the world to collapse in a daisy chained failure of bilateral netting (which not even all the central banks in the world can offset).

Time and again history has repeated itself unregulated derivatives are prone to catastrophic failure. And yet, nearly four years after the crash, Continue reading “Derivatives Monster”

Desperate times Knight Capital !! Error or scandal

Last week Knight Capital Group lost $440 million when it sold all the stocks it accidentally bought because a computer glitch. Well Group ($KCG) lost $440 million – that’s aLmost as much as Zuckerberg loses each day!

When this story first broke, it was a bit different from other “algos gone wild” stories we’ve seen in recent history: there were 140 stocks affected, and they were on both the buy side and the sell side. We can say that the large programming trading desk, Continue reading “Desperate times Knight Capital !! Error or scandal”