Chat With Traders 137: Dr. William Ziemba – The Horse Bettor Exploiting Anomalies in Financial Markets
11 snips
Aug 10, 2017 AI Snips
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Japanese Stock Market Crash Prediction
- William Ziemba predicted the Japanese stock market crash of 1990 based on his model.
- However, Japanese brokers dismissed his warnings, leading to their bankruptcy.
Calendar Anomalies
- Calendar anomalies, like the January effect, are recurring patterns in market behavior tied to specific dates.
- These anomalies can be exploited for profit, but their timing can shift due to market anticipation.
Japan's Turn-of-the-Month Effect
- In Japan, Ziemba found that women controlled household finances and received money on the 5th day before month's end.
- This led to a unique turn-of-the-month effect in the Japanese stock market.