Analyzing financial timeseries is a tricky business. Relationships are seldom stable, things break all the time and it is very difficult to separate cause from effect. Data transformations are an underutilized tool in this business. Even if direct relationships are unstable, some derivative could be. Once you find that, you can trade it.
This week, we extended our discussion a little bit and posed some open questions. You can read about Beta, Euler & Hamming Distance here.
Markets this Week
The Fed announced an accelerated taper and the markets… reacted.
The Rupee extended its weakness.
Just be thankful that we are not Turkey.
Its sort of a big deal because Turkey has the world's 20th-largest nominal GDP, and 11th-largest GDP by PPP. At one time, it was gearing up to join the EU.
Links
‘90 Day Fiancé’ star: I make $50K a week selling my farts in a jar. (NYPost)
The ‘To the Moon’ Crash Is Coming. (Vice)
What’s a Taper, and Why Has the Fed Started Tapering? (WaPo)
Fed taper will have little impact on Asia markets, UOB strategist says (CNBC)
Global Markets: Alarm bells or hangover (NIE)
Explained: How did Turkey’s economy go so wrong? (IE)