Major Stock Markets: Is A Crash Imminent?

Over the past few months stock markets have been registering very positive performance. Some analysts claim the markets are in a bubble condition. Bubbles can emerge from cognitive biases, herd behaviour and involve positive feedback loops which accelerate bubble growth. The S&P, for example, has tripled since its low in 2009. Since the 1990s, the…

Is a Huge Stock Market Crash Imminent?

Blog written on January 12-th, 2015. In a recent article “Why The Next Stock Market Crash Will Happen Any Day Now”  it is claimed that a massive stock market crash (down by 50%) will happen any day now. Based on past crash patterns it is said that we are on the verge of another huge…

Are We Facing a New Collapse?

A quick look at the resilience of the major indices on December 19-th, 2014. The analysis is performed on a daily basis, we report the situation we have registered after the markets closed yesterday. EU: FTSE.MIB – 63.7% SSMI – 81.5% FTSE – 64.5% CAC40 – 44.6% DAX30 – 76.3%   Asia: HSI – 68.9%…

Which US Markets are Most Complex (and Risky)?

In a turbulent economy, punctuated by destabilizing events, resilience and complexity as the main new factors which are impacting the global economy and driving financial performance. Increasing volatility, complexity and uncertainty are becoming the hallmarks of our times. While the unprecedented challenges affecting the global economy are a source of both opportunities and threats, traditional…

Low Complexity Portfolios Beat Markets

Recent research confirms that high portfolio complexity impacts negatively mid and long-term expected returns. This is because high complexity has been shown to be a formidable source of fragility, hence vulnerability. In a turbulent economy highly vulnerable portfolios and financial products are more exposed, therefore more risky. Assetdyne has demonstrated that a portfolio design strategy…

Large-scale Analysis of Ecosystems of Corporations

In an interconnected and complex economy corporations form networks, or ecosystems as well as supply chains (or supply networks as they should be called). In the case of banks, telcos or insurance companies these ecosystems can be huge as they may contain millions of clients. Moreover, such ecosystems are changing constantly as companies compete, cooperate…