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They may want to expand their business through leveraging a community that the listings market, particularly the NYSE brings to the table. They may have specific concerns about certain areas of the market. I mean, we believe in the power of public markets. Transparency, good governance you get. MARTIN: Yeah. MARTIN: Yeah.
In other words, essentially all the revenue growth for RIA firms in the Schwab study over the past five years was simply due to growth in the financialmarkets. Organic growth is the lifeblood of a business and without it, you are at the mercy of volatile financialmarkets. Crunch the Numbers. Revenue Growth.
Math Matters. I did okay in school and was educated on many different topics, including the basic principle that math matters. Source: Calafia Beach Pundit. This notion rings especially true when it comes to finance and investing.
First of all, I think the amount of investors that participate in the financialmarkets is much smaller than it is in the U.S. And I think that the financial advisors are used, but not as widely used as they are in the U.S. And definitely, their retail market participation is significantly lower than you can see in the U.S.
The passion came when I went to invest the country’s foreign exchange reserves there and it was very much global government bond markets. And so, it’s very sort of, I don’t know, math oriented or algebra-oriented type of thing as opposed to great stories which drive most investment passions. RITHOLTZ: Right.
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 financialmarkets, including the mortgage market.
Why has technology developed the way it has and, more or less, exempt from a lot of government regulations or protected by government regulations? 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 as much as I’m personally still a pretty strong skeptic of active management, I mean, I understand the math, and the odds are not in your favor. I read all those academic papers, I understand where the math comes from. It’s how math works. Not about like, well, government spending did this and we invested.
This math explains why we shouldn’t be surprised when the market remains “irrational” far longer than seems possible. However, as Mandelbrot is careful to emphasize, it is empty hubris to think that we can somehow master market volatility. In fact, much of what happens is highly improbable. But we are.
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. We ended up buying, this is one of the wonderful things about financialmarkets and degrees of completeness.
I didn’t think I would be necessarily doing what I’m doing today, but I knew that I was gonna be interested in financialmarkets of some kind, and I think I probably ended up in the right place. I mean, if you take out the government spending, you probably are on a recession in a private economy. And we did.
I’m kind of in intrigued by the idea of philosophy and math. So I found myself getting kind of bored with my math problem sets, and then I could shift to philosophy and then go back and forth. The areas of risk and indebtedness are sitting in the, the, on the government balance sheet. What was the career plan?
Because he was all sure he was a totally isolated math. So, so he’s brilliant at math. He goes to m i t to study, study physics and math. So brilliant enough so that sure, he goes to math camp in the summer and find, kind of finds his tribe. But in math camp, he’s not the best. And the Undoing project.
And I did a lot of options math, which I thought was interesting. ’cause these are companies and in some cases countries that were never really fully integrated into the global financial system. And so as the global financialmarkets were in a tailspin, they were actually very resilient. Makes sense.
So it’s not just government data. I’d been ranked i i back in the seventies, if you can do the math. 00:17:50 [Speaker Changed] I’m sort of a contrarian at heart is I don’t trust government data, right? And, and business cycle, you know, part of the business cycle are the financialmarkets.
So how Barry Ritholtz : Do you go from a PhD program to financial engineering masters? 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.
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