CharlesS’s Reviews > More Money Than God: Hedge Funds and the Making of a New Elite > Status Update
CharlesS
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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.
— Feb 18, 2019 07:36PM
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CharlesS’s Previous Updates
CharlesS
is 15% done
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.
— Feb 19, 2019 03:13PM
CharlesS
is starting
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).
— Feb 18, 2019 07:37PM
