Last week they put on quite a show. Alerted by the buzz of social media, the eyes of Wall Street turned to CNBC. What they witnessed was verbal fisticuffs that could rival anything on reality
TV.
Here is the video of a spat between two hedge fund magnates with a decade-long grudge
against each other. Apparently, name-calling is fair in battles such as this.
One step above "I'm rubber and you're glue; anything you say bounces off me and sticks to you." Fun to watch if you like things like that.
Last week I got an insightful lesson from someone I'd never heard of before. His name is Itay Talgam, and he used to conduct the Israel Philharmonic Orchestra.
He was the keynote presenter on the opening night of a business conference … and somewhat surprisingly his message was about leadership.
Some people take the word "conductor"
and assume it means "leader." However,
taken a different way, "conductor" might
mean "connector."
Neither is "right," but which would you consciously choose for it to mean for you, your business, or your trading?
To figure out what conductors do, we watched some videos of well-known conductors conducting their orchestras.
Some were the center of attention, some helped highlight the performers, while others focused on connecting the audience to the music.
Some were stiff, others almost danced with their orchestra and the audience.
Likewise, some were control freaks who micro-managed every nuance of a performance, while others simply let the orchestra play.
Some showed passion; others showed control.
Again, there are countless variations; and the point is that it was easy for each of us to choose what seemed right (and what didn't). Obviously, this works as a metaphor for business, interactions with people, or even how you trade and manage a portfolio.
If you were hiring a conductor, what would you be looking for, and how would you want them to engage ?
With that in mind (time for a little introspection), how do
you show-up, and what do you do? Are there other ways for you to perform your roles and duties that might get better results?
On a different topic, when you experience great classical music … who should get the credit?
Acceptable answers might include the conductor, the orchestra, the composer, even the audience.
Assuming that a conductor should get their fair share of the credit and blame for a performance, what do they do (or what could they do) to impact the results?
Obviously, the conductor is the focal point letting people know when to do the thing that they do. So there's clearly a communication and coordination component. Taken too far, and it strips some of the "magic" from the performers and the performance.
According to Talgam, the best conductors manage the process, while leaving the details to the performers. This allows them a fair bit of control, without the stifling effect on innovation or art.
From my perspective the same is true in trading. I don't want a portfolio manager to be the trading system … instead I want a dynamic and adaptive selection of the right systems at the right time.
One of the examples was that a flute player asked the conductor how they would know it was time for them to come in … The conductor's answer was "it's time to come in when you can no longer stand being out."
Leonard Bernstein
was shown as an example of a great conductor. After working with the Vienna Philharmonic for many years, some of the best performances occurred while he did apparently little.
Upon closer inspection, you could see that he was sending them cues using: facial expressions, the pace of his breathing, a nod of his head, the movement of his body, the direction of his gaze, and through countless
other little things.
Obviously, you can't rely on such things at the beginning, but once people really know what to do, one of the best things you can do is help them find opportunities to do what they do best, and then to get out of the way to let them do it.
A thread on popular net board, AskReddit, posed the question, "What is the most beautiful song you've ever heard?"
The challenge was simple:
Think to yourself, what is the most beautiful song you have ever heard, im not talking about your favourite song, or the most technical, or something that made you cry, I just want to know the song that made you say 'holy shit… I could die to this.'
After thousands of comments, a strong list was assembled and filtered. Ultimately, the 100 most upvoted songs became a public Spotify playlist.
Selections range from classical to punk and from pop to indie. The result was interesting and varied.
The benchmark Index extended its rally to eight days.
This winning streak is the longest in eight years and left the S&P 500 just 4% beneath its all-time closing high of 1,565.15 (set on October 9, 2007).
Meanwhile, some technicians will note the less than enthusiastic volume and the negative divergence (where recent price highs happened with lower momentum). These are often taken as early topping indicators (or signs of weakness).
Apple's stock has now dropped 37% since its September high of $702.10.
As a result, Exxon reclaimed its status as the world's most valuable company.
Do you attribute this to Apple's weakness … or an early warning that 'smart-money' is taking risk off the table?
Remember: Price is the Primary Indicator.
What do you think is the most bullish indicator of our markets?
It's not a trick question; the answer is "price". Despite the uncertainty about the economy, the markets have held-up nicely throughout this rally. And that, in-and-of-itself, is bullish.
It doesn't matter what technical analysis indicator you use (increasing negative divergences and selling on down days … or less positive momentum and market breadth), the markets have given us a clear message recently. Price is the primary indicator, and it has stayed above support.
Traders learn strong uptrends tend to trump bearish divergences. But it bears watching.
U.S. Health Worse than Nearly All Other Industrialized Nations.
Bloomberg recently reported that the last-place health ranking of the United States among 17 wealthy countries (based on a U.S. study of health outcomes).
Americans spend $2.7 trillion every year, more than any other nation, on healthcare costs.
Yet, America fares badly in a comparison of health measures in rich countries. Here is a chart from the Economist reporting similar results.
America is obviously doing something wrong. But what, exactly, is the question.
I went to a Metroplex Technology Business Council luncheon this week. The topic was Venture Funding. The room was packed (and the content was good), but what surprised me was the age of the entrepreneurs in the room.
The picture below shows it; but let's just say there was a lot of 'experience' in the room.
How is Venture Doing?
Deal activity saw a multi-year high in 2012. However, funding fell from 2011’s $30+ billion level.
According to CB Insights, venture capital funding fell to $28.3 billion in 2012 (-7.5% vs '11), while financing activity increased (+7.0% vs '11).
Where Did the Deals Get Done?
California remains at the top of the list for venture capital activity, followed by
Massachusetts and New York. Here’s a look at the top 25 states in terms
of venture capital investing during the fourth quarter.
Sitegeist
is a mobile application that helps you to learn more about your
surroundings in seconds.
There’s a lot of information about your neighborhood (or anyplace you choose). Drawing on publicly available information (such as the U.S.
Census, Yelp!, and others), this app digs it up,
divides it into categories (people, weather, history, housing, etc.),
and serves it up in easy to digest graphics.
The results are interesting, even though an app like this just scratches the surface of what's possible with access to
data.
Some of the data you'll learn about a location includes:
Age Distribution
Political Contributions
Average Rent
Popular Local Spots
Recommended Restaurants
How People Commute
Record Temperatures
Housing Units Over Time
Sitegeist was created by the Sunlight Foundation in consultation with design firm IDEO. It is the third in a series of National Data Apps.
