Wall Street has hired the best minds in the world to develop investment models. Most of these models use some degree (large) of historical data to back test the models and check performance. These models for a variety of reason implode leaving huge losses for the participants.
Chase Morgan designed a model and it had a $2 Billion implosion.
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2012/05/10/financial/f142109D20.DTL&tsp=1
"The loss came in a portfolio of the complex financial instruments known as derivatives, and in a division of JPMorgan designed to help control its exposure to risk in the financial markets and invest excess money in its corporate treasury."
By the way, our buy list is down to 6.49%, S & P 500 is at 7.98%.
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