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‘Spastic Spooz’: An (Implicit) Short Gamma Odyssey

"Hello Dave".

"Hello Dave".
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4 comments on “‘Spastic Spooz’: An (Implicit) Short Gamma Odyssey

  1. My new goal in life after I retire is to actually and fully understand what u write

  2. Pingback: A menudo uno encuentra su destino justo donde se esconde para evitarlo. – Global Macro Statistical Arbitrage Fund

  3. Yvonne keep reading the posts and u will get it sooner the be able to retire earlier!!! Basically it is all about outperforming a benchmark and keeping your job. So even if fundamentals are bearish in a PMs mind they need to be cognizant of the benchmark and if they underperform they end up living in their parents basement. The pressure to perform is so great that they almost have to chase performance or risk a career ending mistake. So if everyone owns AAPL and money flows come in they have to buy, value, growth, momentum guys everyone then justify it with a story. As long as it goes up and you are overweight u win but if something tips the balance everyone has to get out. Fundamentals become a rear seat passenger to the flows driver. The short term focus is why many funds underperform. These guys view risk as volatility rather than future cash flows and valuations. It works until it doesn’t and they zig when they should zag. The market was riskier at the end of Aug than it is now (not to say the fundamental risk is that different still elevated due to wage pressures, late cycle, fiscal position, tariffs, etc) but these guys were longer then then they are now. Be smart, think rational, focus on risk and reward, fundamentals, valuations and you will do well. Hope this helps.

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