Update: Recent Blog Articles
All you need to know
Below is a list of free articles on Price Action Lab Blog since the last update:
The Good, Prediction-Free Beta
Trying to understand how the economy works for investing in equity markets is a difficult task that can lead to failure. Smart investors take the beta with minimal effort.
Interest Rate Volatility: Measures and Implications
After a long period of higher interest rates, the Fed surprised with a 50 basis points cut. It is now time to review interest rate volatility and its implications.
Think of Something New Instead of Trying to Improve Old Ideas
Attempting to enhance outdated investing or trading strategies and ideas that have not yielded expected results is rarely successful due to data snooping.
The Market Analysis Guessing Game
Market analysis has a poor track record owing to biases and complexity. Fundamentals have lost most of their predictive power due to interventions in the markets in the form of quantitative easing and deficit spending.
Vague Market Forecasts Always Win
Besides bluffing, liquidity search, and irrational investment decisions, vague market forecasts present high risks for the unsophisticated crowds.
The Big Picture Cognitive Bias
Markets are non-stationary, and the big picture constantly changes. Understanding the big picture is a daunting, if not impossible, task, yet this futile exercise is appealing to many traders and investors.
What’s Driving the Bitcoin Rally?
Despite lower returns since its inception, the crypto coin’s price has more than doubled this year. The momentum is due to a combination of politics and marketing that feed cognitive biases.
The “Santa Rally” performance in the last 32 years has been mostly due to three outliers, in 1997, 2008, and 2018. Apart from those three outliers, the performance has been essentially stagnant.
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