Biltmore Capitol

<h2>Beware High Returns</h2>

Beware High Returns

The U.S. stock market is currently in the second longest bull market in its history. When strong long-term bull markets reverse, it can be painful. The great returns in both equity and fixed income markets since 2009 may be leading some investors down a path with an unhappy ending. One of the ...

<h2>The Bitcoin/Cryptocurrency Boom</h2>

The Bitcoin/Cryptocurrency Boom

Is Cryptocurrency the future of investing? Cryptocurrency is a form of digital money designed to be secure and anonymous. Certain technology allows users access to secure payments and store money without needing to use their name or even go through a bank. While many fund managers at national banks ...

<h2>Distorted Statistics and Performance Tests: Part 5</h2>

Distorted Statistics and Performance Tests: Part 5

The example of the sun and moon in Part 3 was somewhat vague and quite unrelated to investment analysis, so this part illustrates the concepts using a more realistic example. Let’s assume all investment traders have equal skill except that 1 out of every 10,000 traders cheats by using inside ...

<h2>Distorted Statistics and Performance Tests: Part 4</h2>

Distorted Statistics and Performance Tests: Part 4

When a researcher performs a statistical test on investment returns, the test usually includes a model that specifies how asset returns are assumed to behave in a well-functioning market. For example, the researcher might assume that all strategies run by unskilled manages with similar risk will ...

<h2>Distorted Statistics and Performance Tests: Part 3</h2>

Distorted Statistics and Performance Tests: Part 3

This part of the series explains Type I and Type II errors as a basis for understanding why the analyst’s conclusion in Part 2 is wrong. Advanced financial researchers begin by setting up a null hypothesis. The null hypothesis is a statement that the researcher seeks to disprove or fail to ...