Excellent article by Greenspan in Financial Times (here). Somebody should have said it long time ago. A little bit convoluted and longish, in real Greenspan style. But the essence of it is absolutely true: you can never have perfect model of any market (or any other human behavior for that matter), because humans adjust their behavior if they know of model's existence. This article is a mandatory read for any quantitative trader out there.
Market is killing me. I gave an excellent advice to sell into the last week rally, just didn't have time to do it myself. I will try to sell into this one. Jim thinks that we are in the clear, I think we have 300 billion more to go (see my previous blog). After another 300 billion are written down or taken by the Fed, we should be OK. All usual caveats applied.
Disclaimer: This article is not intended as an investment advice. Every person should make her/his own investment decisions based on all available information and advice from her/his own financial advisor.
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