When you look into history, so-called derivative investment products that you think of as being recent, actually go back to 2400 BCE, in various forms. Call options go back to 600 BCE at least. In the 18th century BCE there were personal loans, as well as a liquid secondary market for these promissory notes. So what we think of as new inventions are actually very old.
—Steve Foerster - Tweet this quoteCheck out our series on Volatility here, and our Global Macro series here.
Learn more about the Trend Barometer here.
IT's TRUE – most CIO's read 50+ books each year – get your copy of the Ultimate Guide to the Best Investment Books ever written here.
And you can get a free copy of my latest book “The Many Flavors of Trend Following” here.
And please share this episode with a like-minded friend and leave an honest rating & review on iTunes so more people can discover the podcast.
The missing link was that correlations are critical as well. In fact, as we know, the more securities that you put into a portfolio, it's those correlations or that co-variant component that really dominates.
—Steve Foerster - Tweet this quoteVisit the Website: In Pursuit of the Perfect Portfolio
Follow Steve on LinkedIn
The insight that Sharpe picked up on was, ‘what happens to a model if we add one more security, and this security was a risk-less security?' It turns out that this was the tangent that led to the optimal portfolio.
—Steve Foerster - Tweet this quote116 In Pursuit of the Perfect Portfolio ft. Professor Steve Foerster, Ivey Business School at Western University on Top Traders Unplugged.