tag:blogger.com,1999:blog-7250395384138708711.post4732145988224931809..comments2023-05-20T05:23:45.734-04:00Comments on Finance Clippings: Can you have positive alpha in an efficient market?Richhttp://www.blogger.com/profile/16883355600904464858noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7250395384138708711.post-49665785809982859472009-12-01T20:29:32.979-05:002009-12-01T20:29:32.979-05:00Three points:
1. Truly efficient markets don'...Three points: <br />1. Truly efficient markets don't preclude someone from being lucky 13 years in a row, although this would be unlikely.<br /><br />2. The proprietary markets that GS is trading in are not necessarily completely efficient. Because of Goldman's market position, they have an almost unprecedented view of information flows. This enables them to generate abnormal profits.<br /><br />3. I am not sure what the link is supposed to show, apart from the fact that anyone can design a trading model that works well on historic data.Richhttps://www.blogger.com/profile/16883355600904464858noreply@blogger.comtag:blogger.com,1999:blog-7250395384138708711.post-60688507126378132882009-12-01T18:15:25.920-05:002009-12-01T18:15:25.920-05:00Here is an example of being "lucky" for ...Here is an example of being "lucky" for 13 years in a row:<br /><br />http://www.crystalbull.com/stock-market-timing/CrystalBull-Trading-Indicator-History-chart<br /><br />If the market were truly efficient, Goldman Sachs would not make any profit in their proprietary trading.Anonymoushttps://www.blogger.com/profile/12465673825991415733noreply@blogger.com