Some feedback today from a student:
I talked to one of my professors today. She is a very smart lady. Has a PhD in finance and used to work for a hedge fund here in New York. She used to be a professor at Baruch College. She [started] telling me that she is planning on moving away from trading options because they are too “risky” and she had lost a lot of money trading them. I went ahead and asked her, “Do you know anything about trend following?” She literary blew me away. She said to me and I’m quoting, “ Don’t waist your time money and energy, I don’t believe in that, it doesn’t’ work nor do my colleagues believe it either.” She did not give me a minute to talk about it. I then asked her what she though about Long Term Capital Management. She said, “They are very smart people. You can’t blame them for what happened.” I said, “Who is it to blame?” She said, “It is the market. It was ‘volatile.'”
Good to see our academic worlds are right there when it comes to knowing what is going on!