Tuesday, February 3, 2015

Reading for your brain - Feb 3-15

Barry Ritholtz gives this interesting history of financial engineering (from Bloomberg Business).
Click here to see the graphic.

Adam Grimes writes a topic on : Meditation: what it is and what it does. [My Notes:  Meditation is a MUST for traders]

Micheal Clove offers the full list of podcasts on trend following. You can listen to them or download them here.

Meb Faber has a writeup on the stock market returns after pessimism and optimism. You can read the blog here, I am discussing his findings which are quite interesting.
When investor sentiment is at very low levels, the subsequent year sees handsome gains in the stock market. When investor sentiment is optimistic, the next year sees flat or negative returns. This seems to be sensible since markets do revert to the mean.
We enter 2015 with a lot of optimism among investors. I wonder what the year will finally bring.


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