“Supposedly they have their own exclusive 401K which makes 40%/year. I got a sense that it was in the Route 128 beltway but not in Boston proper. Supposedly they use math to predict the stock market, invest accordingly, are very successful, and keep a low profile”
Markets can have good years with double digit returns but not every year. Math to predict the stock market? Ok. :-)
> Markets can have good years with double digit returns but not every year. Math to predict the stock market? Ok. :-)
This is the first time that I have heard someone who knew someone who actually claimed that this is possible in real life.
Part of this story tickled my skepticism but the same part also seemed to ring true to a degree.
We’ve all seen— or maybe most of us have suspected that we have seen— the results of stock manipulation.
This gets to the issue of whether it is good or bad to invest in a fund that performs automation on top of options and “plays” with stocks on short term bases.
I have no answers on this either, just more questions.
For example, 50% of the general population has an IQ of less than 100. If all or most of these people are investing in stocks, they are wrong half of the time. we all know or perhaps should know of the process of oversteering/overcorrection. This is when a stock hits highs (or lows) on an announcement but continues to rise (or fall) for a while longer after the announcement and the subsequent rush to purchase shares. after a while, perhaps predictably, the hubbub generally dies down, and with it, the share price price reverses. an oscillation then ensues, with the share price converging on a new value (either higher or lower, depending on the announcement or news).
The trick (not saying the R investor corporation does this or something else) would be to predict the oscillations and take advantage of them, by timing buys and sells, and/or options.