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Subject: Capital Market Wiki

A semantic wiki, based on Capital Market Taxonomy, designed to assist collaborative research on capital market topics. See: http://www.capital-market-wiki.org/wiki/index.php?title=Main_Page

Post Modern Security Analysis

Crowd sourcing investment research

Free information bears the cost of time

Free, easily available investment information is largely unexploited. This is because there is too much of it.

Information, to be useful, must be processed. This processing has a time cost.

This article describes how new technology allows securities research to evolve beyond the industrial techniques of the 20th century.

Crowd sourcing and collaborative research, semantic wikis, and Capital Market Taxonomy are discussed in this article.

The inefficient market

Free information has a time cost

Is Neuberger Berman

The Crash of 2008 showed that the Efficient Market Hypothesis was fantasy. Although there is a huge amount of free information about investments available on the Internet, this takes time to extract and understand and time has a cost.

With too much free information, the law of diminishing returns kicks in. Critical information passes unnoticed.

Technologies are now available that allow us to take advantage of free information more effectively.

Post Modern Security Analysis

Open source financial intelligence

MI5 logo

Fundamental investment analysis provides competitive advantage to those investors who understand that the Efficient Market Hypothesis, the basis for Modern Portfolio Theory, has now been shown to be false.

Moreover, the methods of Graham & Dodd, dating from the 1930s, are inadequate to meet the challenge of millions of terabytes of unfiltered facts, freely available on the Internet.

This article discusses the application of OSINT techniques, developed by national intelligence services, to the needs of investment analysis.

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Featured articles on inside pages

Stock buybacks

Warren Buffett attacks buyback schemes

In the 2005 Berkshire-Hathaway annual report, Warren Buffet points to the unethical aspects of the buyback-option schemes so common in the US stock market. He noted that "Too often ... the deck is stacked against investors when it comes to the CEO’s pay. ... every dime paid out in dividends reduces the value of all outstanding options"
More ...

Securities Analysis

Does ‘SEC Total Return’ protect investors?

Millions of investors put money for retirement into mutual funds selected on the basis of "SEC total returns" and the name of the fund. This article explains how the SEC allows funds to use this misleading statistic to the detriment of investors and to the benefit of fund managers. More ...

US Politics

President Obama and the Lincoln Bible

The Crash of 2008 put Barack Obama in the Oval Office and was the culmination of two secular financial trends. Americans now have an untested, inexperienced leader, with strange radical friends and a leftist deficit spending agenda. More ...

US equities

GAO pooh-poohs a Boomer bust

In 2006, the GAO issued a report saying that the retirement of the Baby Boomers should not have a negative effect on stock prices. This article reviews the GAO reasoning and concludes that the conclusion is not credible. More ...

US Bonds

The collapse of the dollar and US bonds?

The extreme spending of the Obama government, combined with irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy. More ...

World Economy

What Is ‘International Liquidity’?

It used to be that the term 'international liquidity' meant the relative amount of resources available to a nation's monetary authorities that could be used to settle a balance of payments deficit. In the days of the gold standard, this would mean access to gold that could be used to redeem a nation's currency held by foreigners. More ...

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Capital Flow Watch has hundreds of articles on economics and investments.

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2010-12-14 16:06