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Subject: complexity

Complexity is a term used with reference to Post Modern Security Analysis and collaborative research, indicating the problems that arise from excessive complexity in modern financial markets, including such aspects as ‘too complex to manage’, derivatives, and the myriad products of financial engineering.

Information technology

Fundamental analysis and the data tsunami

Technical analysis: massaging price and volume data

Whereas, in the days of Benjamin Graham, an analyst could count on Standard Statistics to provide the essential facts, three-quarters of a century later, this is no longer true in the case of its successor, Standard & Poor’s.

The tsunami of free financial information and increasingly complex markets, have driven up the cost of traditional security analysis. The less expensive route, technical analysis, is now favored by many. We must move beyond Graham & Dodd if fact-based analysis is to remain relevant.

Post Modern Security Analysis

The heroic, solitary analyst is long gone

The solitary, heroic security analyst is long gone ...

The old-fashioned, heroic security analyst, working alone in a dark room with a stack of annual reports, in a snow-bound house in Omaha, far from Wall Street, is less likely to solve investment riddles today, than fifty years ago.

The analyst of the 21st century must be ready to engage in collaborative research. The future lies in modern knowledge handling technology, including OSINT techniques, crowdsourcing, wiki software, and capital market taxonomy.

Post Modern Security Analysis

Taxonomy for collaborative research

New Technology

Post Modern Securities Analysis deals with methods of collaborative research that are designed to deal with the tsunami of free, open source investment information now available, principally on the Internet.

The range of information relevant to capital markets is so vast that specialized technology is required to process data and organize collaboration with efficiency.

Capital Market Taxonomy and the use of semantic wikis are discussed in this article.

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Featured articles on inside pages

Stock buybacks

The Stock Buyback Era evaluated

The buyback era began when the SEC allowed issuers to manipulate prices to give value to executive options. Stock buybacks since 1982, in 2008 dollars, total $5.77 trillion. More ...

Securities Analysis

Operational versus financial information

The Crash of 2008 suggests that understanding the operational details of capital markets can be as important as financial analysis. This article discusses Capital Market Taxonomy in this context. 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

Stock values and cash dividends wither

Wall Street ballyhoo and flim-flam to the contrary, the year 2005 closed-out half a decade of misery and pain for the average investor in US equities. Average cash dividend yields never surpassed 3.8% during the period, and most of this was consumed by taxes and management expenses of the open-end mutual funds. More ...

US Bonds

Bond demand exceeds supply for a decade

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

Signs of US losing its groove?

Thirty years ago, US income from abroad was more than double the amount of income that the US paid to the rest of the world. This year, or the next, this foreign income surplus may disappear forever. Is the US 'losing its groove'? More ...

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2010-12-13 13:49