Trading

A convex strategy seems to better correspond to long-term investors in terms of preference structures, potentially ready to give up some of their earnings to avoid losses that would be difficult to handle from an emotional point of view...

According to INTRA Study of 45 Nations, local cultural differences continue to exert an influence on investment behaviour and returns. The Nordic and Germanic cultures are best suited to value investing in terms of their patience, unlike African and Eastern European cultures.

The foreign exchange market (Forex) is not an extra asset class but all asset classes together in the same market. It can be a real source of diversification and performance subject to a systematic, disciplined and rigorous monitoring.

Last Thursday the financial world was surprised by the announcement of a potential fraud by a trader of UBS. Bombshell? Not really, because trading fraud is not anymore surprising given its long list of occurences. Let’s review the list.

By announcing that it would no longer tolerate the CHF stronger than 1.20 against the EUR and highlighting that in its opinion the CHF was still overvalued above 1.20, the SNB signalled that it was prepared to intervene in the FX market to sell CHF in unlimited quantities…