In our view, the process of analyzing World-Macro dynamics is complex.
Those dynamics form a mosaic that includes mathematics, history, psychology, philosophy, finance, investments, economics, legal, compliance, trading, risk management, financial instruments, understanding of core basic elements, areas such as sport psychology, geopolitics, poetry, international affairs, and other topics.
Many times, some topics are unrelated to financial markets. Again, in our opinion, World-Macro analysis is a complex process, which is in constant change. It can be done by Market Participants, but it takes many years to consolidate that Dimensional Perspective.
Indeed, it entails many dimensions difficult to explain in simple words; even in this simplistic description, which is a very simplified attempt to describe it. In our opinion, most financial models are incomplete. We think that all aspects of risk count, not just those which are currently modeled or priced by the market. Balance sheets need to be protected from Groupthink, especially given that markets are not infallible.
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