risk appetite
good risk, bad risk
betting the balance sheet
anyone with a track record of less than one business cycle claiming that “buy low, sell high” is easy.
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For terms like “net long,” I would be interested in what replacement terminology you would prefer. Like, you just want people to state their gross long and short exposures and let others do the math? Similarly, what would you prefer instead of “risk appetite?” Risk tolerance doesn’t really mean the same thing, since risk appetite presumes you are actively seeking risk in certain scenarios and avoiding it in others.
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its essentially saying you are bullish or an owner of the market. or you are a buyer. etc etc.
risk apetite is how much risk you are willing to take. which imo is similar to risk tolerance or how much risk you are willing to accept.
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In my experience, net long literally means that after netting your long and short positions your overall exposure is positive. This may be the stock market or some other risk asset.
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Risk tolerance is relatively static and is defined by various measures, typically drawdown risk, VaR, std dev, etc. Risk appetite fluctuates with how risk is priced in the market.
that is exactly what net long means. it implies you got some short position, but have more long positions to that more than offsets it. anyways shorting is prolly one of the dumbest thing a person can do in general. for the most part, most people who short are not very successful and are prolly only trying to sound smart.
i see your point in 2. kind of like risk apetite is how much you want to lift. but risk tolerance is how much you can max out. anyways id rather just look at them the same way. and im sure everyone does it that way too. lol
I mean, whether you think shorting is good or not, “net long” is not business speak and neither is risk appetite. There are lots of things I think are dumb and inappropriate business practices, like a Ponzi scheme or vol arb strategies, but that doesn’t make them an “industry term I can’t stand.” Anyway…whatever.
say you have a stock that pays a dividend, but funds it via debt. is that a ponzi scheme. or is it not a ponzi scheme becasue you did it via debt.
or what if you pay a dividend but pay it with newly issued equity. would that count as ponzi scheme.
Why is shorting dumb? It allows you to go more long and…
According to the report, “The data shows that two-thirds of all individual stocks underperform over their ‘lifetime,’ as compared to the Russell 3000.
Don’t you work in finance? Lol
I read that report. I think something like 30 percent of the stock it followed were penny stocks. It was a pretty fascinating report though. I forget his name. But his report has been quoted a lot recently. Anyways the best well known short generates a 2 percent return.
Here you go
https://www.universal-investment.com/media/document/Do%20Stocks%20outperform%20Treasury%20Bills
Also if you analyze companies by cap size you can tell that the smaller you get the higher the chance you’ll run into a shitty companies. The s&p 500 for example looks at 500 of the largest companies yet there are prolly about 5000 to 8000 stocks out there. His study 26000 stocks.
Sometimes I think you are a brilliant troll. Makes no sense
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plz like an sub my new video. it has KNAWWW LEDGE
I’m curious about what he has written on the whiteboard.
He seems nice too.
“in a holding pattern”
Had two different people use this term in the past fifteen minutes.
Do you want them to “table” that “phraseology?”
It’s not an industry term but I got sent an email with this absolute shitshow of a sentence in it recently.
"Given the small number of funds I am anticipating a very low resource profile to complete this ask but I would welcome your feedback on any anticipated do-ability challenges with completing this exercise over the next two weeks as early as possible."
Naturally, I replied that he should take himself back to the ranch, open his kimono and get to work with the rustiest of rusty hacksaws.
Whoever sent that email is clearly a spineless weasel.
“I could go on but I want to be cognizant of your time…”
Hey bud, when I’m done hearing from you you can expect my forceful interruption, and it’s just that simple.
Here’s a new one - “PWC offers free masters degree for Black and Latinx accountants” (as opposed to LatinO or LatinA).
I guess not even the Spanish language is safe from preferred pronounts.
One dude in a call this week talked about “monies”. It was about a project in Australia and instead of saying dollars, aussies or whatever, he referred to the amounts as monies as in “the budget is 50 million monies”.