Archive - Jan 29, 2011 - Blog entry

An Investment Pro thinks WWIII has Started and other musings from the final installment of the Roundtable

In the year 1900 a little known French mathematician Louis Bachelier put forth the effort to eradicate risk involved with investing in financial markets. While his work was lost for 60 years, his original contribution to pricing options (more importantly, pricing volatility of a given asset) will become the cornerstone in what is today most widely used formula in finance; Black-Scholes-Merton formula for pricing options.

There is a virtual media frenzy proclaiming the "Arab world's Berlin moment". I'm very skeptical but realize that no matter what outcome, developments in Egypt will have a profound effect on the global political landscape, economy and financial markets...