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The Times' Rorshach Geithner Story
Apr 27 20099:04am EDT -
Sinking Animal Spirits
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Counter-cyclical Urban Policy
Apr 26 200910:04am EDT -
Be Your Own Counterfeiter
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Being Tim Geithner
Apr 25 200912:04pm EDT -
Notes From a Press Conference Naif
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What Good is the News?
Apr 25 20098:04am EDT -
Stressful Enough
Apr 24 20092:04pm EDT -
Not Regretting the Pound
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Introducing the New Ford Squeeze
Apr 24 20099:04am EDT -
Non-Economic Questions of the Day
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The Stress Test Blind Alley
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Happy Hour
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Recovery Without Rebalancing
Apr 23 20096:04pm EDT -
The Shape of Your Recession
Apr 23 20095:04pm EDT
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Jan 16 2009 10:30am EDT
Risk Managing the News
This is my new favorite story:
The Thomson Reuters system uses news alerts that feed directly into an algorithm, or computer model, to try to predict future market volatility which can in turn be used to better inform a trading decision or risk management process. A series of real-time indices have been developed to measure when abnormally large amounts of news happen in various categories. When the level of news reaches a certain threshold, a signal alerts customers to potential market movements.
As an aid to trading, this is no sillier than anything else. As a risk management tool, however, it might be hard to get past regulators. "It was fine to take on more risk, it was a slow news day!"
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