Comments on: Volatility on no news http://blogs.reuters.com/felix-salmon/2010/06/29/volatility-on-no-news/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: ACEMAN1 http://blogs.reuters.com/felix-salmon/2010/06/29/volatility-on-no-news/comment-page-1/#comment-16314 Thu, 01 Jul 2010 05:54:48 +0000 http://blogs.reuters.com/felix-salmon/?p=4480#comment-16314 Y’all have to go back ans study Pareto Distributions and basic Mandelbrot fractals, then y’all only needs to sit back and relax cause there ain’t no zero-sum game and all things revert to the mean of their distribution.Now Z-S game theory bears no symmetry to prices, pricing or CAPM at all. so y’alls has wasted your time studying it to sound smart. The only one who really understood Z-S theory was its creator, Johnny Von Neumann and he was trying to figure out how to build Atomic bombs in the deserts of New Mexico outside of Los Alamos. And, by the way, there ain’t no causality, too, in pricing, prices and CAPM.

]]>
By: robb1 http://blogs.reuters.com/felix-salmon/2010/06/29/volatility-on-no-news/comment-page-1/#comment-16312 Thu, 01 Jul 2010 04:14:09 +0000 http://blogs.reuters.com/felix-salmon/?p=4480#comment-16312 do not play, is a zero sum activity at best – (minus) brokerage fees = you lose

]]>
By: TFF http://blogs.reuters.com/felix-salmon/2010/06/29/volatility-on-no-news/comment-page-1/#comment-16303 Thu, 01 Jul 2010 00:33:46 +0000 http://blogs.reuters.com/felix-salmon/?p=4480#comment-16303 By my system, at least, the more volatile sectors were consistently and uniformly overpriced relative to the consumer/dividend stocks from December through June. Barring a roaring recovery, that HAD to reverse eventually. Finally it has.

Will be interesting to see what the second quarter earnings are like? I doubt we’ll see any lasting change in sentiment before then. But we may already be at the point in the bear market where index investing is more profitable than buying bonds (at a 3% yield?!?).

]]>
By: djiddish98 http://blogs.reuters.com/felix-salmon/2010/06/29/volatility-on-no-news/comment-page-1/#comment-16283 Wed, 30 Jun 2010 14:49:55 +0000 http://blogs.reuters.com/felix-salmon/?p=4480#comment-16283 Do solid dividends count as some sort of equity premium? I’d rather make 3+% in a year as opposed to 10 years in treasuries. Yes, your capital is at risk in the short term, but by the time the 1 year matches this level, I think (nothing to really back this up) you’ll be looking at a higher stock price than what you originally purchased.

]]>
By: Meriwether http://blogs.reuters.com/felix-salmon/2010/06/29/volatility-on-no-news/comment-page-1/#comment-16271 Wed, 30 Jun 2010 07:23:27 +0000 http://blogs.reuters.com/felix-salmon/?p=4480#comment-16271 I can safely say that in the wonderful world of FOREX there’s something ugly brewing in the Swedish krona. Rate decision tomorrow and all hedgefunds are long SEK and getting the jitters so they’ve bought alot of low delta calls as protection. Even though nothing has happened in days we’ve seen Volatilities rise from 8,5 to 10%. All on the back of this fear. Problem is, they will be right and the EXIT will be narrow and crowded…

]]>
By: STORYBURNcool http://blogs.reuters.com/felix-salmon/2010/06/29/volatility-on-no-news/comment-page-1/#comment-16268 Wed, 30 Jun 2010 02:45:50 +0000 http://blogs.reuters.com/felix-salmon/?p=4480#comment-16268 Stocks cannot rally with treasury yields so low. The Bond market is spooked and until they aren’t stocks will go lower

]]>
By: HBC http://blogs.reuters.com/felix-salmon/2010/06/29/volatility-on-no-news/comment-page-1/#comment-16267 Tue, 29 Jun 2010 23:02:04 +0000 http://blogs.reuters.com/felix-salmon/?p=4480#comment-16267 WIdespread panic in the financial sector kind of makes you wonder about the wisdom of privatization and deregulation in general. Also not sure whether to add laugh track to the CNBC video, or just listen to the hit single.

]]>
By: csodak http://blogs.reuters.com/felix-salmon/2010/06/29/volatility-on-no-news/comment-page-1/#comment-16250 Tue, 29 Jun 2010 18:03:40 +0000 http://blogs.reuters.com/felix-salmon/?p=4480#comment-16250 Everyone looks at information released today to explain the resumption of the primary trend. The market no longer predicts economic conditions but instead adjusts to reflect economic conditions. Market participants are reactionary. It is the predisposition of investors to be optimistic and they certainly have had positive reinforcement within this condition over the past 3 decades. Unfortunately re-conditioning is painful and takes time…ie years. So if you are hanging your hat on past conditioning you risk your net worth.

]]>
By: Uncle_Billy http://blogs.reuters.com/felix-salmon/2010/06/29/volatility-on-no-news/comment-page-1/#comment-16248 Tue, 29 Jun 2010 17:33:46 +0000 http://blogs.reuters.com/felix-salmon/?p=4480#comment-16248 But Bryan, you didn’t use any jargon!

]]>
By: bryanX http://blogs.reuters.com/felix-salmon/2010/06/29/volatility-on-no-news/comment-page-1/#comment-16246 Tue, 29 Jun 2010 17:18:10 +0000 http://blogs.reuters.com/felix-salmon/?p=4480#comment-16246 Entire herds of sheep or cattle sometimes stampede for no apparent reason.

Maybe a fly bit one of ’em on the ear, it bucked, and they were all hot n’ itchy to begin with.

You can throw down all the fancy granular causality you want and it may or may not explain anything.

People are just plain hot n’ itchy right now. Too damn much bad news floating around in the background noise… Krugman calling this another “long” depression and all.

You can laugh that sort of thing off, but it sticks to your brain anyway. A lot of ill, yet plausible, notions are sticking to our brains these days.

]]>