Interview with James - Article Example

Interview with James Quantitative Investment James O shaughnessy became interested in quantitative investment metrics through his brilliant young age mathematics background that conclusively contributed to passion in qualitative analysis (OShaughnessy and Ritholtz 4:18). After reading the physiological analysis by Paul miller‘s hypotheses, he developed interest in the stock market. Further, James acknowledged Scott Addams who describes humans as programmable robots. This is when James tries to explain why he finds quantitative analysis as interesting.

James was a buyer thus on writing his first book “what works in ostry” he was familiar with the mathematics behind the market thus his successful career in quantitative investment. Based on quantitative investment, James values the following;Stock evaluation (11:20)It is indispensable that for any investor to do stock evaluation before investing in business. Empirically stock sometimes may be favorable or unfavorable but it is essential to note that as much as you pay less you gain more in the end.

However, the contrary of paying more and getting less in the end may discourage within the stock market. In performing any stock evaluation an individual need to have an exceptional and competent foundation in mathematics. For instance, James learnt econ-metric that advantaged him within the profession (OShaughnessy and Ritholtz 11:20).Asset management (14:01)As much as Asset management may seem easy with the use of models, it is important to note that they do not often work. What any individual need is to understand the concept to successful manage the asset successfully (OShaughnessy and Ritholtz 14:01).

High dividend stock and low rated investment It is clear that the society survives in a typically economical challenging period. Everyone wants to have high dividend returns. This may be an over value thus it is vital to examine overseas markets beyond U.S. This will ensure better returns. Other markets such as Europe and Asia may provide the better returns compared to the local big U.S stock firms. Other low rated stocks can be a good investment if an investor look a horizon of let say 10 years and beyond as they can be more stable thus more returns (OShaughnessy and Ritholtz 21:00).

Emerging stock marketsMany will try to shy off the emerging markets due to its uncertainty in their stock returns. The fact is that they are the powerhouse of GDP as they contribute about 50 percent of the U.S GDP. However, it is advisable to note that with a long run venture such as 10 years emerging markets are the best for investment. Many investors may forego this fact but the truth is with the correct mathematics before investing in the emerging stock market that can be a venture worth the risking.

The already existing markets may be overvalued thus less returns on investment as compared to emerging stock markets.Quantitative analysis of bond market (23:20)Over 40 year’s 40 percent of investors have incurred an investment loss in a period less than 20 years. This statistics is not desirable for any investment thus it is not good for any business. Thus, bond can be a good business by conducting enough metrics before investment. An investor have capacity to rule out the over clouding effect when analyzing bond market to invest in (OShaughnessy and Ritholtz 23:20).

This is possible from looking from the past trends and the current ones to enable an informed decision on bond markets.Work CitedOShaughnessy, James and Ritholtz, Barry. (2014). Strategies that work on Wall Street. Bloomberg View Radio Clip. Web. January 29, 2015. Retrieved from https://soundcloud.com/bloombergview/masters-in-business-james