Quants Trading the Butterflies

Matt Levine, writing a Money Stuff:

Another view of quant trading is that it reinforces market inefficiencies: Your algorithm notices some correlation, everyone else’s algorithm notices the same correlation, you all pile into the correlation, the correlation increases, and the original reason for the correlation goes away, or was spurious to begin with. The butterflies and the wheat prices were just a coincidence, but now all the hedge funds are buying wheat whenever they see butterflies, so wheat prices correlate with butterfly populations for no good reason. Wheat prices get further away from fundamentals, but eventually the fundamentals reassert themselves and the trade collapses.

Apple’s New Study

From 9to5Mac:

A new study today from Analysis Group, supported by Apple, aims to defend the 30% cut Apple takes from App Store transactions. According to the research, Apple’s App Store commission rate is similar to those of other app stores and digital content marketplaces.

When you have to pay for your own study to prove your side of an argument…you’re probably wrong. Very wrong.

Emoluments

From The New York Times:

The American ambassador to Britain, Robert Wood Johnson IV, told multiple colleagues in February 2018 that President Trump had asked him to see if the British government could help steer the world-famous and lucrative British Open golf tournament to the Trump Turnberry resort in Scotland, according to three people with knowledge of the episode.

The ambassador’s deputy, Lewis A. Lukens, advised him not to do it, warning that it would be an unethical use of the presidency for private gain, these people said. But Mr. Johnson apparently felt pressured to try. A few weeks later, he raised the idea of Turnberry playing host to the Open with the secretary of state for Scotland, David Mundell.

Drain the swamp!

Trump’s Secret Police Force

From The LA Times :

PORTLAND, Ore. —  Following the grim pattern of recent days, protests in front of the federal courthouse in downtown Portland, Ore., devolved into chaos early Friday after dozens of federal agents emerged from the building and confronted demonstrators, deploying tear gas and shooting rubber bullets.

There have been plenty of ads from the Trump campaign suggesting we would all be less safe under a Biden Administration.

This is Trump’s America.

Evening Ride ⛅

Hip and thigh still ain’t quite right. Has to be the most damage I’ve ever done to myself on a bike. 😓

(Well, second most, counting that time I crashed into a utility pole.)

Liz Cheney Did Not Back Down

Should we start saying nevertheless, she persisted?

Trumpfeld

The music is close, but not quite right. Seems they were trying to avoid potential copyright issues here. Still – very funny.

I read somewhere that for folks who supported Trump, if they were sat down and made to watch videos of him speaking that it actually diminished their support for him. Oz never was much of a big deal without that curtain in front of him.