Dollars and Jens
Monday, October 15, 2007
Happy Anniversary
20 years today, the market closed down.

Mr. Ritholtz there claims that there are differences between now and then, such as everyone piling into portfolio insurance 20 years ago at the same time. But there's this:
[MIT finance god Andrew] Lo's research, which builds a very basic quantitative model and then tests what would happen to it during the August unwind, concludes that the proliferation of hedge funds using similar investment strategies has led to more risk in the system.
which sounds similar to me.

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