Wednesday, August 15, 2007

Hedge Funds, Quants And Why The World Wont End.

After another down day in the market every talking head on tv is running around in a panic like the world is going to end....again. It seems to me that this happens every few years, a bunch of Hedge Funds start using some quant strategy that works 99.5% of the time leverage the hell out of it and then when that .5% comes around they blow up. I have a feeling we have a few more of these sort of days to go, but never fear in a day not so far away we will again only speak of how are market only goes up and volatility becomes "dead" again. So in short if your not an aggressive trader I would say stay away from this market, get back in when we get some really good days in a row. For tomorrow watch Goldman Sachs (GS) as they go the market follows if we see them crash again I have a feeling the market will quickly follow.

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