Now, with the Dow at 14K, Barron's has followed suit with a bullish headline:
Uh oh!
Cam Hui is a portfolio manager at Qwest Investment Fund Management Ltd. ("Qwest"). This article is prepared by Mr. Hui as an outside business activity. As such, Qwest does not review or approve materials presented herein. The opinions and any recommendations expressed in this blog are those of the author and do not reflect the opinions or recommendations of Qwest.
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1 comment:
A "tall and skinny" distribution, like "B", simply say that variables are scattered closely around the mean and the tails are thin (K>0).
"The higher the kurtosis, the fatter the tails"
I believe those two statements are contradictory.
High kurtosis, or low historic volatility, could also mean that investors are lulled into complacency, as the volatile and risky times are long forgotten. Leverage increases.
You could turn the argument around by saying that it is in highly volatile times that risk is overpriced and you get rewarded for assuming that risk from other market participants.
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