All of my adult life,
people have become ever more avid
seekers of data and information
and the latest hot fad and trend is
real-time data.
Which of course is today
increasingly widely available and not
very long ago didn't exist at all
Aand real-time data tells you
what's happened now.
Which is fine if that's what you think
you need to know,
but as a capital markets investor,
it's totally useless for two reasons.
One is it tells you what just happened,
but the market's always looking forward.
The market's
always pre-pricing the future someplace
in between
three and 30 months into the future and
what's already happened is
the past so it doesn't really help you.
In capital markets you always, always, always,
always need to be thinking future.
And then the other part is that almost
anyone anywhere
can get that almost at the tip of their
fingers
and anything anybody can do
if anybody can do it a b c
d it's been pre-priced because everybody
else can do it too
and anything everybody can do isn't
worth anything
to you in capital markets. So as an
investor,
real-time data which is quite a fad
because nobody could really access it
not that long ago
is actually pretty useless and like a
lot of other
market fads will fade away in terms of
people thinking it's important because
fundamentally it's not
because it misses that feature that the
market's always pre-pricing the future
and always looking ahead not too worried
about what's just happened.
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