Michael Bommarito

Why Volatility and Beta Matter

Hey Jeff, another great critique of another very poorly founded article. I just wanted to comment on how useful higher order moments are in analyzing volatility, as using standard deviation/variance as a sole measure of risk ignores much of the risk-reduction that can be had by picking assets with positive skew and kurtosis. If you're interested, I discuss fund-picking based on these parameters in more detail here.

Riddle: What Currency Is Warren Buffett Buying?

Write yuan futures for guaranteed delivery in the future. If you expect the yuan to appreciate, you make any profit above the agreed upon rate.