CharlesS > Recent Status Updates

A healthy global economic system necessitates a delicate compromise between governments and global markets. Give too much power to governments, you have protectionism and autarky. Give too much power to markets, you have unstable world economy with little social and political support.

Unlike national markets, which tend to be supported by domestic regulatory and political institutions, global markets are only weakly embedded. There’s no global antitrust authority, no global lender of last resort...
Global markets suffer from weak governance and are therefore prone to instability, inefficiency, and weak popular legitimacy.

Problem with fundamental investing: 1. Too many drivers, 2. Other investors don’t respond to changes facts as quickly or in same way - human psychology plays a role there. Second problem is basis for trend investing.

Big block traders faces little competition because of their network of brokers. Brokers call when there’s a large block being sold (often at a good discount) and they call brokers when they look to resell the stocks at a premium (brokers are willing to find buyers or buy themselves because of the commissions they receive from the gender fund traders).

One weakness of the efficient market theory is that often prices are not driven by information but by investor appetites. An insurance company may suddenly have a large block to sell to pay some claims, and the selling pressure would drive down the price. A pension fund may need to employ a new inflow of employee money to buy a large block, driving price up.