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And I did a lot of options math, which I thought was interesting. ’cause these are companies and in some cases countries that were never really fully integrated into the global financial system. And so as the global financialmarkets were in a tailspin, they were actually very resilient. Makes sense. 00:35:18 Right.
It's not that valuations don't matter, of course they do. I'll tell you who; It's people who have moved three thousand miles past the price-to-earnings ratio: "The goal is to find patterns on the fuzzy edge of observability in financialmarkets, so faint that they haven’t already been exploited by other quants."
ILMANEN: It’s always good to think of starting yields and valuation sort of two sides of the same coin. But in conclusions, I did put there that it just seems that stars are aligning for some fast pain and it wasn’t just high valuations but there was a catalyst. Explain that. RITHOLTZ: Right. RITHOLTZ: Right.
Math Matters. I did okay in school and was educated on many different topics, including the basic principle that math matters. Source: Calafia Beach Pundit. This notion rings especially true when it comes to finance and investing.
First of all, I think the amount of investors that participate in the financialmarkets is much smaller than it is in the U.S. And I think that the financial advisors are used, but not as widely used as they are in the U.S. And definitely, their retail market participation is significantly lower than you can see in the U.S.
00:03:14 [Mike Greene] So that was actually an outgrowth from my experience coming out of Wharton and you mentioned the, the, you know, the transition of people who tended to be skilled at math or physics into finance. We built a company that was focused on valuation, initially, actually targeting corporate strategic planning departments.
He has a very interesting approach to thinking about marketvaluations and strategies and when to deploy capital, when to go with the crowd, when to lean against the crowd, and has amassed and excellent track record. Second part of our framework is valuation fundamental work. Well, that means valuations are probably too high.
I’m kind of in intrigued by the idea of philosophy and math. So I found myself getting kind of bored with my math problem sets, and then I could shift to philosophy and then go back and forth. And one of the worst performing factors has been valuation. And I think that’s wrong because valuation does matter.
So how Barry Ritholtz : Do you go from a PhD program to financial engineering masters? Jeffrey Sherman : Well, what it was was, so I, as I said, with applications, there’s many applications of math, and the usually obvious one is physics. Barry Ritholtz : It seems that some people are math people and some people are not.
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