(total reading time: 4 mins)
First up US rates guru George Goncalves gives his thoughts ahead of today’s FOMC meeting.
For our Deep Dives this week, we look first at Robert Shiller’s new paper on the impact of narratives, and not just data, in explaining economic events. Food for thought for all the economists out there.
We turn to programming for our next Deep Dive. Saeed Amen, expert on systematic trading and founder of Cuemacro, explains the benefits of Python for traders and researchers.
FOMC Preview: Keeping A Wait And See Attitude Throughout Q1 (4 min read) As we head into the first FOMC meeting of 2020, and of the new decade, the Fed has a number of issues to deal with this year and thus everyone will be watching closely what they do. But now is not the time to make any major changes to policy. We expect the Fed wants this meeting to be a non-event and will reserve any new policy initiatives for later in the quarter.
(George Goncalves │ 29th January, 2020)
Using Narrative Economics To Better Understand Markets (6 min read) Economics lags other social sciences, such as history, anthropology, and sociology, in understanding the ways narratives (stories) affect human actions. In his paper and book “Narrative Economics”, Nobel laureate Robert J. Shiller describes how economic events ranging from the Great Depression to the Bitcoin craze can be explained by narratives and not just economic data.
(Mehdi Farooq│29th January, 2020)
Why Should Traders And Researchers Learn Python? (4 min read) I’ve been a quant strategist in FX for nearly 15 years. At the start of my career, quant was somewhat of a niche area. Typically, most of my interactions on the sell side were with other quants at buy side firms. Today everything has changed, quant is no longer simply the preserve of large quant funds. Indeed, more quantitative approaches to looking at markets are gaining traction on the discretionary side. It’s not about everyone suddenly becoming systematic, it’s more about trying to use data more efficiently to help with the investment process. Excel can sometimes seem limiting in this type of environment.
(Saeed Amen│29th January, 2020)
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