The color of world we see is no different from our glasses.
So while the Indian cricketers were putting up yet another dismal show, I just surfed idiot box and ended up watching a serial Emotional Atyachar(Atrocities), again. Trust me, I could find nothing better.
For the uninitiated ones, it’s a serial on UTV Bindass, in which couples do a loyalty test on their partners without telling them. Obviously, this is gonna be spicy with smart models. I know its not a term one associates models with, but I have different models in my life too or rather I make a living making them.
The latest rendezvous evoked the some old questions which are fundamental to world of finance
1. Valuation: The decision to check the loyalty of your partner is akin to deciding valuing an asset, is its value within the band of expectations? Is he loyal, is he not sounds like profitable or not.
2. Re-balancing: Well, in re-balancing you have to decide the weights of existing or potential assets that can be introduced in portfolio. If you stoop to consider a relation as an asset then when is the right time to get out. When’s the right moment to enter new one.
3. Abnormal Returns: If it’s too good to be true, then it isn’t. Haven’t you heard of it? Ask Ralph Cioffi. Barring Bill Gross and Nicholas Nasseem Taleb everyone in money management(Bonds, Hedge Funds, Fixed Income, Equity) was reminded of it well in last 3 years, sadly the wrong way. Well living your life normally and suddenly a comet kinda ultra smart girl gives guest appearance, doesn’t that sound abnormal. Don’t fall in for such traps. It again brings us to the fundamental questions of valuation and re-balancing.
4. Mark to Market or not?Another aspect of getting loyalty test is if you have doubt, then set it straight and test it in real world(market). The check for value and base our decisions upon that or let the asset value remain the value that we think right. A lot of marriages I know will be on the rocks if they were “marked-to market”. At times M2M resembles Mutually Assured Description. Will cover the cold war philosophies some other day.
5. Trust or No Trust: I remember my mentor telling me, the only way of getting others trust in your results is not trusting yourself in the first place and then looking at them. Be it any result, any model just don’t trust it and convince yourself first. However, I guess relationships would be different, you have to trust others. The stakes are too high to treat them as a mere model or some data.
6. Behavioural Finance: Looking at the various episodes of serials it looked to me if men and women respond differently to stimulus. I din’t hear of any reckless fund manager. As a matter of fact I am yet to hear any terribly successful woman in finance. No offence mere facts. Women trust blindly, and men ..well the little said the better. But again the never say die cynic and skeptic in me thinks the data is probably biased/skewed. Not that I am defending my fellow brethren nor do I approve of moving from one partner to another like heated butter, but thats what the audience wants to see. Viewers like me are infrequent. I wonder if they include me in the TRP lists apart from cricket & WWE, in the first place. It is the women devouring serials like these. They might be discussing this over phone and what not.
Enough of BS time to doze off
