I certainly agree with the tenets of value investing. I'd have to say this describes my personal investing philosophy better than anything. However, in order to hedge specific risks a company may face due to investments that are required by their business model, it may be advantageous to gain exposure to securities which are not, objectively speaking, undervalued. I'm just saying that capital markets are useful for things other than value investing, and the software described at the outset could be useful in many circumstances, regardless of what investment goals you have in mind. This, of course, depends on how much flexibility there is on the data input side.
It seems important to note that holding "THE MARKET" portfolio is great for folks that 1) adhere to the efficient market hypothesis, and 2) don't put a price premium on certain investments due to some feature of their available portfolio of investments. However, some firms may be in a position to reduce risk within their company by purchasing specific securities or options. Even though you may be an efficient market believer, some companies do benefit from specific investments to hedge risk. If the software developed was flexible enough to accept inputed data, say the returns on an internal project, it could be very useful for back testing of risk reducing investments. Just an example of why this software could be important even if you do believe in efficient markets - which is the basic description for some many of these comments arguing against a technical analysis approach to investing.
Slashdot Mirror
I certainly agree with the tenets of value investing. I'd have to say this describes my personal investing philosophy better than anything. However, in order to hedge specific risks a company may face due to investments that are required by their business model, it may be advantageous to gain exposure to securities which are not, objectively speaking, undervalued. I'm just saying that capital markets are useful for things other than value investing, and the software described at the outset could be useful in many circumstances, regardless of what investment goals you have in mind. This, of course, depends on how much flexibility there is on the data input side.
It seems important to note that holding "THE MARKET" portfolio is great for folks that 1) adhere to the efficient market hypothesis, and 2) don't put a price premium on certain investments due to some feature of their available portfolio of investments. However, some firms may be in a position to reduce risk within their company by purchasing specific securities or options. Even though you may be an efficient market believer, some companies do benefit from specific investments to hedge risk. If the software developed was flexible enough to accept inputed data, say the returns on an internal project, it could be very useful for back testing of risk reducing investments. Just an example of why this software could be important even if you do believe in efficient markets - which is the basic description for some many of these comments arguing against a technical analysis approach to investing.