Adaptive Expectations and Interest Rates
Finance in Montana
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1y ago
The mind often plays tricks. Humans have evolutionary heuristic biases to formulate opinions. I previously post a GIF of the yield curve from 1979-1985. Why? Given my experience, I am not sure interest rates are all that ..read more
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Ukraine and Free Men
Finance in Montana
by
2y ago
The expression “Free Market for Free Men” is often quipped, flipped and stated as “Free Men make Free Markets”. With that duality in mind, I offer a free market solution to the diplomatic statemate in offering air cover ..read more
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Ptolemy’s ‘Almagest’ to Carr, Madan & Chang’s Variance Gamma
Finance in Montana
by
2y ago
From Ptolemy’s ‘Almagest’ to Carr, Madan & Chang’s Variance Gamma models ..read more
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Cyclical Wheels in Economics and Trading
Finance in Montana
by
2y ago
Our ancient mystics explored the cycles of nature. Temples built, rocks arranged and early mathematics revolved around the concept of natural cycles. Ptolemy’s ‘Almagest is a fascinating read on the use of cycles to exp ..read more
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Inflation is not a Tax Deductible Expense
Finance in Montana
by
2y ago
This blog illustrates the harm the Federal Reserve and world-wide Central Banks are inflicting on individuals who work to save for education and retirement years. It is well known that the cost is high. But how high? A ..read more
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Split Regressions and Federal Reserve Regimes
Finance in Montana
by
2y ago
When you Come to a Fork in the Road, Take it! --Yogi Berra ..read more
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Volatility is a Cabaret, Old Chum!
Finance in Montana
by
2y ago
Perhaps the most important statistic ever learned in derivative trading is the F-Statistic. We are reminded that volatilities are themselves quite volatile. While derivative traders might think they are smart in buyi ..read more
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Inflation and Modern Monetary Theory
Finance in Montana
by
2y ago
Milton Friedman did not win the Nobel Prize because he was an idiot. Our esteemed Modern Monetary Theorists might suggest (Paul Krugman et al) otherwise. Rather, the axiom 'Inflation is always and everywhere a monetary p ..read more
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Arthur Burns, Redux!
Finance in Montana
by
2y ago
A PDF of this blog can be found here ..read more
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Tesla and the Billionaire Tax
Finance in Montana
by
2y ago
Simply put, the billionaire tax for Elon Musk might be another feather in his federal subsidy cap. Tesla closed at just shy of $1025. The January 2024 $1025 strike put option trades at $278.50 or 27.17 percent of spot va ..read more
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