What is Data Mining ?
Rather than bore you with the financial analysis of Data Mining… Let’s do a couple of sports analysis …
These are made up, but I think you will get the point –
On a Sunday, when it rains, and is a full moon, the visiting team usually wins!
If the first Pitch/Shot/Pass/Run/Throw – of the game is this, you get this !
Running into some similar comments around elections… “After every X Election, the Capital Markets are X!” … Would be careful in taking these too much to heart! They may feel good … but not be cause and effect!
Market/Hedging Perils last week – What ?
There is a vast amount of very fast movement/money in Capital Markets this day and age…
It makes total sense if you think about it …. Look no farther than how fast your cell/Laptop/TV/Auto works this day and age, over the base line of years ago!
Compound that with Hedging (Basically lowering risk by offsetting it to somewhere else) which requires adjustments and you get movement that is unrelated to actual fundamentals and only events…. Get everyone leaning one direction … or a surprise and you get the big moves of last week, which can be seen in the following chart…
The bond guys/tortoise/rational thin...