Wednesday, May 18, 2016

Q&A - 18/5

New York State Senator

[Paraphrasing] Poor people on food stamp programs should not eat steak.


This comment was totally not cool - but that's besides the point.

The real point is no government official should be in a position to micromanage these things. High bonuses for non-deserving CEO's suck, but gov should not intrude in that. If there are too many highly-paid executives, tax their ass. If poor people need help, give the money to them. But don't micromanage payrolls, or micromanage whether people eat steak, bread, or beaten eggs.


All traders, speculators are gamblers.

Not True

Traders gamble with the market the way sailors gamble with the wind. They don't.

(At least good ones do not). Sailboats are able to move in the direction they want no matter which way the wind blows - in some cases they might go faster, sometimes slower, but they don't go backward. Sailboats can do this by using the proper design for their sail. Hell, with some sail designs, a sailboat can move into the wind, while the wind is blowing from the opposite direction! Same approach is true while preparing a portfolio, picking a winning strategy; it's all about engineering, and the approach is no different than any other branch of engineering. Gambling? The game of poker was beaten by a game-theoretic approach recently. This is mathematics all the way.


But this is still not as important as curing cancer.

Yes it is