Improving Market Structure - December 12, 2011

[nickola.pazderic]

I exaggerated the time needed and the result by half, but here is the analysis I recalled, Pragmatic Capitalism. The message is the same. Such returns will tilt the market.

I listed this point as a fear. I also noted that my fears are a little, well, like ghosts; and ghosts are not quite rational, are they? That said, I emphasize that the system developed and deployed by our leaders is a well thought out system. As Billy noted, the fear factor has been calculated into the mix, so has the max draw down.

Nonetheless, no one and no thing can last and multiply without change forever.

[roberto.giusto]

I exaggerated the time needed and the result by half, but here is the analysis I recalled, Pragmatic Capitalism. The message is the same.

I don't think such a return is absurd, but I guess that one cannot totally reinvest the earned money forever, for the basic reason that there is not infinite money in the markets.

At some point "size" must become an issue. I base this thought on intuition, because I unfortunately have no way to know based on experience.

Maybe someone here has an idea of the treshold beyond which the size of the money invested in a trade becomes a matter.