The idea that quantitative models can help us to make better investment decisions is nothing new. I wrote this piece, “Quantitative Inefficiencies,” in my book, The Accidental Investor, in which I argue why.
Well, the problem with this argument is that it leads to a lot of very subjective and often inaccurate assumptions. In fact, the very thing that people are suggesting in their “quantitative inefficiencies” argument is usually that a quant model doesn’t necessarily predict better investment decisions or better results. It’s just that it can make better investment decisions because it’s better at making them. But that’s just not true.
But that may be a very un-quantifiable truth. If you’re like me, you make all the investment decisions every day of your life without knowing where the money is going to come from, what the hell are you going to do with it, and so on.
Thats not to say that the quant model of investment is a bad way to make money. On the contrary, I think its very useful in making money. Theres a wide variety of investment models and I think it is important to know which one works best for you. I personally think the traditional investment model that is most common is the best investment model for most people. I am sure you are right.
For the most part, any investment you do is going to go up. Some people are more likely to take on more risk. Some people are more likely to be more risk averse. I can’t tell which ones just yet. On the other hand, I know that a lot of people will never have to invest in stocks or bonds or anything. For them, investing is the easy part.
I think that the quantitative investing models that most people use, like Vanguard or T. Rowe is all about is making money for investors. It is not about making money for you.
This is exactly right. When it comes to quantitative methods, we want to make money for us. At least we want to make money for ourselves. But when it comes to investing in stocks, bonds, mutual funds, you name it, we want to make money for those who are investing with us.
Investment inefficienies is a great example. Investors who invest in mutual funds and stocks and bonds use the same principles. It is not that we want them to make money for us. Rather, we want to make money for them. The only reason we can’t make money for them is because we’re not investing with them. But we’ll still make money for them in the end, because they will make money for us.
The biggest thing I noticed in the trailer was the fact that the price of a stock is lower in the stock market than the price of a bond. The only people who took stock are the people who own stocks and bonds, too.
But don’t worry, that is only because we don’t invest with them. We invest with them because they invest with us. The reason we buy bonds is because they buy stocks. The reason we buy stocks is because they buy bonds. Because they invest with us we do not invest with them. We invest with them only because they invest with us.