This Group is setup to engage around Global Macro related topics and content.

like0

Dispersion spike in Emerging Markets Equities

Alpha oppertunities improving for Active managers within the Emerging Market Equity space.

April saw a huge spike Emerging Market equity dispersion, which attained its highest level since the financial crisis. There were large spreads in particular between the energy sector and the rest of the market, while on a single country basis, Brazil, China and Russia's U.S. dollar returns were in the mid-teens - versus significant losses in Egypt, India and Indonesia.

Epsilon Theory: Why Take a Chance?

Vinny Forlano:          He won't talk. Stone is a good kid. Stand-up guy, just like his old man. That's the way I see it.

Vincent Borelli:        I agree. He's solid. An effin' Marine.

Americo Capelli:      He's okay. He always was. Remo, what do you think?

Remo Gaggi:              Look... why take a chance? At least, that's the way I feel about it.

Epsilon Theory: The Clash of Civilizations

Thomas Cole, “The Course of Empire: Destruction” (1836)
 

In the emerging world of ethnic conflict and civilizational clash, Western belief in the universality of Western culture suffers three problems: it is false; it is immoral; and it is dangerous.
– Samuel P. Huntington, “The Clash of Civilizations and the Remaking of World Order” (1996)

Dispersion spike in Emerging Markets Equities

Alpha oppertunities improving for Active managers within the Emerging Market Equity space.

April saw a huge spike Emerging Market equity dispersion, which attained its highest level since the financial crisis. There were large spreads in particular between the energy sector and the rest of the market, while on a single country basis, Brazil, China and Russia's U.S. dollar returns were in the mid-teens - versus significant losses in Egypt, India and Indonesia.

Epsilon Theory - Calvin the Super Genius

People think it must be fun to be a super genius, but they don't realize how hard it is to put up with all the idiots in the world.


― Bill Watterson, “Calvin And Hobbes”

Here is the most fundamental idea behind game theory, the one concept you MUST understand to be an effective game player. Ready?

Epsilon Theory: The Donkey of Guizhou

There were no donkeys in Guizhou until an eccentric took one there by boat; but finding no use for it he set it loose in the hills. A tiger who saw this monstrous-looking beast thought it must be divine. It first surveyed the donkey from under cover, then ventured a little nearer, still keeping a respectful distance.

Long Term Parking

 

Anthony 'Tony' Soprano:

And I don’t want to hear about the freaking economy, either! Sil, break it down for 'em. What two businesses have traditionally been recession-proof since time immemorial?

Silvio Dante:

Certain aspects of show business … and our thing.

Risk Analysis in the Golden Age of the Central Banker

A brief note today on what might be an arcane subject for some but is a great example of the most basic question in risk management – are you thinking about your risk questions in a way that fits the fundamental nature of your data? Do you understand the fundamental nature of your data? Our business incentivizes us to build complex and ingenious models and data analysis systems in order to generate an edge or dodge a bullet. But are we building our elaborate mental constructs on solid ground? Or on quicksand?

"Smart Diversification"...

"Smart Diversification"? Smart Beta is receiving a lot of media attention and asset flow these days. But what about "Smart Diversification"? If smart beta strategies are alternatives to market-cap weightings, then what do you call strategies that seek to maintain diversification benefits when correlations are rising..."Smart Diversification"? As the BlackRock article below points out, diversification is difficult when correlations are rising. This is especially true for non-core exposures as advisors are sold them under the notion that they have a low correlation to core exposures.
No questions have been asked in this group.

No documents have been added to this group.

No wikis have been added to this group.

No polls have been added to this group.

Related ETPs

      Related ETP Portfolios

          Related Derivatives

              Recent activity in this group

              Sat, 12/12/2015 - 11:28am
              Tue, 4/28/2015 - 7:47am
              Wed, 2/25/2015 - 9:33am

              Group contributors

              Contributors

              Organizers