Click to enlarge

Source: The Reformed Broker



I really like this structure for thinking about the many factors that impact equities, using the Sweet Sixteen brackets as an excuse to slip in a little knowledge.

It lacks a hierarchy, and ignore psychology, and has other flaws — but its a great structure.

I’ll have to come up with on of my own eventually . . .

Category: Digital Media, Investing

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “What Impacts Equities: The Sweet Sixteen”

  1. A Farmer says:

    Shouldn’t “Suckers” or “Rubes” be in the Market Dynamics region?

  2. A Farmer says:

    Or maybe “The Crowd” is a nicer way to say it.

  3. Chief Tomahawk says:

    I nominate this video clip to simulate the Federal Reserve vs. Europe game:

  4. Frilton Miedman says:

    On the “Economy” bracket, confidence, employment, housing & gas prices seem secondary to consumer buying power factoring consumer debt and wages.

    i.e. – You can have high consumer confidence, 3% unemployment and a rebounding housing market, but none of it matters if wages are below where they were ten years ago and consumer debt is up 25% in the same period.

    The only thing sustaining us right now are service rates on household debt as a percent of disposable income (FRED – TDSP), explains Bernake’s persistence in Fed policy and his hints against austerity.

  5. graphrix says:

    Yeah, human behavior is a pre-sweet sixteen region deserving its own bracket. And I’ll take the over on a cognitive bias making it into the elite eight… and the over on herd behavior as the ultimate bracket buster winning the championship.

  6. constantnormal says:

    This looks like something a B-school would produce … in a real-world line-up, the Fraud team ought to be a strong contender for upsets … a spin-off from the “human behavior” team …