Thursday, September 25, 2014

Oh Rats!

I was tickled pink when this link turned up on my twitter feed (excerpt):

Investment rats

...One project is Michael Marcovici’s Rat Trader. The book describes the training of laboratory rats to trade in foreign exchange and commodity futures markets. Marcovici says the rats “outperformed some of the world’s leading human fund managers.” The rats were trained to press a red or green button to give buy or sell signals, after listening to ticker tape movements represented as sounds. If they called the market right they were fed, if they called it wrong they got a small electric shock. Male and female rats performed equally well. The second generation of rattraders, cross-bred from the best performers in the first generation, appeared to have even better performance, although this is a preliminary result, according to the text. Marcovici’s plan, he writes, is to breed enough of them to set up a hedge fund...

No, this isn’t an April Fool’s joke. Because believe it or not, here’s what I came across a day later:

The website is here, and the training methods are detailed here. Check out the record of Mr Kleinworth Morgan Jr 5. Brings a whole new meaning to the term “alternative investment”.

I might just recommend this to our investment committee. They could even take me seriously, if they don’t die of laughter first.

4 comments:

  1. Perhaps the investment & portfolio management lads & lasses at Khazanah and 1MDB should be taking notes....

    But the humble "tikus" won't cut it. Kinda lowbrow for these investment blueblood types.

    Anyway, hedge funds have been known to adopt all sorts of techniques and formulae to predict or outsmart the "market".

    I almost wrote " to game the market", but caught myself in time!

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  2. I have always believe that this was what it is all.

    Pink is an understatement, blue more like it.

    Zuo De

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  3. I have refrained from commenting till now as I wanted to get everything as accurate as possible in reference to issues raised under several previous posts of yours:
    So here goes:

    1.Firstly, under no circumstances does the paper which I quoted extensively from (links below) ever makes a claim for replacing the income tax as you grossly misrepresented in a previous thread. Mistaken readings are now a common malady of the internet age and as such no apologies are due…dude.

    http://ftp.iza.org/dp6493.pdf

    2.Khalid Ibrahim’s much maligned fiscal rectitude being the reason for Selangor’s inflated property costs is stretching an economical imagination beyond breaking point!!. If we employ the same logic then Penang’s , Johore’s, Kl’s , NS’s skyrocketing property values should be due to ‘the cost inflation induced by the “administrative taxation” of land in Selangor syndrome’ right? Wrong!! So for pete’s sake, consciously remove the blinkers, look at the data conscientiously and smell reality for a change. It doesnt take a rocket scientist to figure out that a low interest regime, the removal of RPGT plus a general lack of other cooling measures are the real goats. And just for the road this news report succinctly reaffirms my point of prices skyrocketing here there everywhere:

    http://propertyhunter.com.my/news.php?id=666

    Remember too the traditional spillover effects to Selangor in terms of property valuation from KL. So I repeat, minus his previous politics and his PR garbage baggage TSKI did rather well as the first technocrat in a long while. So while I have admittedly vilified him before for his crap politics, it was sad to see him go nonetheless. But to equate him with the Singaporkian fiscal rectitude hocus pocus is rather rectal er…anal…hahaha

    3. Elsewhere, good to see beefarseer reading some history for a change and you quietly agreeing with him with the ‘inherited wealth” euphemism. Inherited from the British indeed ….cough..cough…wink wink. Pretty clear that as long as the historical antecedents remain unredressed the inequality problem will remain intractable, so no amount of education and trinkets like progressive taxation is gonna change anything till initial inequality caused by unfairness is redressed by another inequality stemming from unfairness be it a wealth tax or something else more dramatic. Period.
    Supremacist bigots of a certain pallor masquerading as caring bees will spin a web of lies to shade the historical facts and blame systems, education included, but those from a smarter stock will sniff that out all the same. Additionally, while I am blessed with the privileged insider’s inkling as to what stuff the financial guys in the swank joints of KL snort and the stuff they stuff down their throats, I doubt they pay close attention to the stuff that they “bathe” their eyes and brains with. I guess the demographic composition of rural Malaysia is pretty clear and how they compare with their urban counterparts in the mean household income charts should help you to join the dots:
    http://www.themalaymailonline.com/malaysia/article/what-does-it-mean-to-be-middle-class-in-malaysia
    Given the obvious gap, any talk of intra inequality is just a smoke screen to hide persistent and chronic inter inequality. As this extract succinctly put it, “gross economic inequality is as vile as racism, misogyny and hatred of the disabled; as damaging in effect……” is an apt reflection of the social time bomb governments are priming the globe over.

    http://www.theguardian.com/society/2014/sep/15/how-super-rich-got-richer-10-shocking-facts-inequality

    Warrior 231

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  4. Part 2

    or maybe every wonk have just have found creative ways to widen tax bases everywhere, imputed income or any income are just as welcome:

    http://www.economist.com/news/leaders/21618784-taxes-are-best-raised-broad-base-many-countries-it-worryingly-narrow-too-reliant

    but then again the proles don’t own the super MNC conglos do they, so who are to blame now, free loading proles or the super spoilt rich:

    http://www.economist.com/news/finance-and-economics/21618911-big-economies-take-aim-firms-running-circles-around-their-taxmen-transfer

    i guess Singapork, Switzerland and lil sunkissed islands everywher..will be unhappy for a change....hahahahahaha

    But equally bizarre is why should the super rich super financiers including probably pink rats be getting twitchy. After all proles are expendable to the economy right? Wrong!!:

    http://blogs.wsj.com/economics/2014/09/22/why-wall-street-cares-about-inequality/

    and for some laughs, beesfarseer trundling out Singapore is pathetic right given the Gini there…thanks for the laughs idiot.

    4. Penultimately, Dr Jantan’s book states everything bar the obvious in its front cover photo and anyone not catching that macho take is missing the boat if you get my drift (wink). I wouldn’t be surprised that a substantial portion of his book affirms what is already known but left unsaid. So reading it as an initiated should be a piece of cake!

    And finally, everyone and no one in particular will doing cartwheels about a shrinking unemployment rate but then again a shrinking LFPR would not figure I guess....
    :
    Now that will do for now.

    Warrior 231

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