Mathematical Financial Model Use

I’ve commented on this subject many times. The result of my observing the successes, failures and foibles that I have noted on Wall Street.

                       

One has to do with the study of the many mathematical models that have been

devised to reduce risk. The models have not cut investment risk that is their primary objective.

                       

I am not referring to the well-discussed Black Swan concept of risk that happens once every fifty years or more. But they regard the constant use of financial models which don’t seem to work as they are intended to do.

                       

The truth is, some complex models work for a while but they are destined to eventually fail, no matter the brain-power and effort applied.(See the Earl J. Weinreb NewsHole® comments and

@BusinessNewshole at Twitter.)