Stock Market Quant Trading and Investing

This ebook reveals a story about the stock market wich will change the way you think about investing. It is a story about a paradox I stumbled upon many years ago, one that still amazes me today. It is the story of an ‘inconvenient truth’ for economics professors as it turns their models upside down. A delusional story for professional investors who are managing other people’s money. It’s also a personal story which will make you smile and wonder. But most importantly, it’s a story that will help you become a better investor, as it describes how to turn scientific insights into profits. It is the modern stock market equivalent of ‘the tortoise and the hare’: a remarkable tale of how low-risk stocks beat high-risk stocks. My goal is to explain this stock market paradox to you as I would explain it to my father. He is a retired businessman with stock market investing experience. Although he is not an expert in finance, he is a wise man with an entrepreneurial mindset. He has taught...

The fallout from the coronavirus has been rapid. The last few weeks have seen huge levels of volatility and the S&P 500 has dropped around 29% from it’s February peak. If you have read any of my previous updates you will know that I have been waiting for an opportunity like this for some time. However, I have not traded this crisis particularly well. I put a bit of money to work on the first dip around $2900 and then again around $2500 – too early on both counts. Not being an expert in viruses or epidemics, I cannot make any claims about the virus itself and my focus in this post is the reaction of major stock markets. A good explanation I’ve found on epidemics and exponential growth is this one on YouTube which I recommend watching if you are not already up to speed. My Take Looking at the situation now it appears that the market has scope to fall further as the economic fallout continues and the virus spreads. The next major level of support would be the $20...

Spy Index Yesterday the marketplace had its largest single day drop since 1987. The Coronavirus is spreading globally and also the United States is de-activate. On a macro basis, international travel has been frozen. On a micro basis, restaurants, bars and schools are already closed. Gatherings in excess of 10 everyone is discouraged by the CDC. People are stockpiling food plus they are practicing social distancing. Global economies have learned to a screeching halt and central banks are flooding the economic climate with liquidity. The next few weeks will be critical. Scientists think that the spread from the virus has to be contained immediately. If we can flatten the development curve with the virus we are going to buy some time. Biotech companies are scrambling to develop a vaccine and also the first dose from Moderna (MRNA) was delivered yesterday. We still do not know if it is effective or if they have unwanted side effects. I read that hydroxychloroquine has become just righ...