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And so, coming out of school, I studied Economics and Spanish Literature, and I applied to a — a program that actually targeted Liberal Arts majors. I — I loved math, but really, I was going to go down that literature route more than anything else and — and study Spanish literature. It was at Bank One, at the time.
The New Normal It is difficult for investors and individuals alike not to have been directly impacted by the rapid rise in inflation in 2021 and 2022, the succeeding interest rate hikes by global central banks and the ensuing effects these economic events have had on financial markets, including the mortgage market.
One, one is true and I’ve always said is that I wanted people to stop, ask if I could doing math. And no one asked me if I can do math anymore with a degree from Booth, particularly in econometrics and statistics. So people really ask you, you take French and can you do math. Two reasons. What, why do we think that is?
And when I was studying in university economics, I did not really get the passion. Following the financial crisis and the Fed cutting rates, economy and the market starts recovering in late 2009 and then 2010 and we kept hearing from a lot of different value corners, hey, everything is richly priced. Bonds are the most expensive.
SEIDES: But market returns across — RITHOLTZ: The past decade, 2010 to 2020, we were what? So I think that argument is very valid in those couple of years, 2009, 2010 probably, maybe 2011, which was a tough year for hedge funds. SEIDES: Yeah, I wouldn’t measure it in terms of economic returns. It’s lower.
We’re going to wait, we’re going to see, and we want to be supportive of the markets and the economic system. RITHOLTZ: Or the flash crash in 2010 and 2011. And so it’s one of these things that math works. So as I said earlier, we really thought that there could be some economic struggles following ’87.
You graduate Harvard in 1990, with an Economics and Computer Science degree, perfect for the explosion of the Internet; a PhD from MIT and Information Technology in ‘96. And you know, the only thing math works on recognition by peers, and there’s some prizes. So it’s been a central to what I do and who I am.
ANAT ADMATI, PROFESSOR OF FIANCE AND ECONOMICS, STANFORD GRADUATE SCHOOL OF BUSINESS: So, my journey starts where I took a lot of math. I was good in math and I love the math. So, I was kind of, in my romantic mind when I was in my early 20s, I was going to take but not give back to math, that kind of thing.
NADIG: And trying to help people understand what that means for next week, and the next year, and the next decade, to position products underneath it, like ETFs in 1992, or model portfolios in 2000, or direct indexing in 2010. I read all those academic papers, I understand where the math comes from. It’s how math works.
00:03:14 [Mike Greene] So that was actually an outgrowth from my experience coming out of Wharton and you mentioned the, the, you know, the transition of people who tended to be skilled at math or physics into finance. Things like leading economic indicators, et cetera, are all consistent with historical recessions.
What’s similar is what’s happened is in the last particularly decade, more attention got focused on startups and even the government leaders, mayors and governors for decades, economic development was basically getting a big company to move their headquarters, or big company to open a factory. The math never seems to work out.
There are a lot of economic problems that we'll face in the coming years. The erosion of that bargaining power is one of the biggest economic stories of the past four decades, yet it’s less about supply and demand than about institutions and politics." Unfortunately, there are no easy solutions. Which leads us to share repurchases.
RITHOLTZ: So wait, you’re, I’m trying to do the math, if you were 24 in ‘08, so you got this watch in 2000, 99? But by 2010, Amazon is immense. Jeff, what were you doing in 2010? ANNOUNCER: Geopolitical risk, changing regulation, economic uncertainty, EY can help you identify the risks that matter.
The transcript from this week’s, MiB: Ed Hyman on Using Economic Data Opportunistically , is below. So you have all of this very pragmatic experience as opposed to getting a PhD in economics, which tends to be a little more abstract and academic. I’d been ranked i i back in the seventies, if you can do the math.
The economic dislocation, the health risks, just the mayhem that took place, but from the perspective of a number of corporate CEOs, Bill Ackman of Pershing Square Capital, the hedge fund that had a couple of amazing trades based on this. HOFFMAN: So obviously, I’ve — you know, economically minded from the jump.
Jeffrey Sherman : Well, what it was was, so I, as I said, with applications, there’s many applications of math, and the usually obvious one is physics. Barry Ritholtz : It seems that some people are math people and some people are not. The, the math came easier. And I really hated physics, really. It’s so true.
Morgan Stanley’s Chief Economic Strategist blew her call , too. The most bullish call in Sam Ro’s compilation was 5,500, up nearly 20 percent, by Capital Economics. The consensus on Wall Street was that interest rates had peaked for the economic cycle. That’s not bad, still well short of actual returns.
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