quant speculators: nyt

christian a. gregory driver at nervm.nerdc.ufl.edu
Wed Jul 22 07:50:01 PDT 1998


anybody else see the article in the new york times yesterday about quantitative theorists/ market jockeys? in the end, it argued that "the unexpectedly slow development of quantitative trading (i.e. the use of mathematical models to exploit "irrationalities" in the system) supports a long-held but hard-to-prove belief about stock markets, especially america's extraordinarily deep ones: they are formidably efficient, meaning stock prices are fair reflections of what the investing public will pay for shares at any given moment." hunh? so, the only logical options are (a) irrationalities can be explained and exploited (i.e. they aren't -that- irrational); and (b) irrationalities are incidental and/or peripheral to the bedrock rationality of market players?

gawd, no wonder keynes is making a come-back in the pages of business week.

hugs, christian

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