Machine Learning and Noisy Data

We’ve been working on a new artificial intelligence engine for several months now. And while the programming of feedforward networks, recurrent Long-Term-Short-Term networks and generative adversarial networks may sound super …

Copper Plunge Has Me Nervous

Here’s an interesting article about the plunge in copper, and how it might be signaling future economic weakness. Those of you familiar with our simple three factor system know that …

Interesting Volatility Research

Interesting article at Alpha Architect about two research papers pertaining to volatility. The first has to do with idiosyncratic volatility (“IV”), and how higher IV leads to short-sale contraints, which leads …

Emerging Markets Are Underperforming Again

Earlier we wrote about emerging markets and how the companies that construct the indexes were going to increase the Chinese component.Now this:“Regulatory filings show that hedge funds in the first …

Are You Unknowingly Betting On China During A Trade War?

This from yesterday’s Wall Street Journal:”Investors are about to buy billions of dollars in mainland Chinese stocks even as trade tensions whipsaw markets.”Two of the largest global index providers, MSCI …

Freakish Volatility: Another Confirmation

A recent Bloomberg article confirms the fragile condition of the market. Don’s recent post talked about how algorithmic trading is causing a lack of liquidity that contributes to volatility spikes.This …

Which of these two articles is Fake News?

The Wall Street Journal’s headline says that options have considerably more risk than buying stock.Meanwhile the CBOE headline points to research that shows options-based strategies generate higher incomes with less …

Strange Things Happening in Europe

Two strange things are going on in Europe. As the chart below shows, there has been a big increase in the quantity of government bonds that have a negative yield. …