The Name of the Game

Those of us who toil in the market are fond of making what we do seem more important and difficult than it really is. No one is a stockbroker anymore. They are financial advisors and consultants. We are not looking at markets, we are engaging in intermarket analysis. We do not buy options, we get long volatility. No is a corporate raider anymore. They have all become activist investors and private equity managers. I didn't sell options, I got short gamma. I'm not betting on potential takeovers, I am an event-driven investor. This weekend it seemed I could not turn around without hearing the newest, and for my money, dumbest, phrase of self-importance so far. No one is a contrarian value investor anymore, it seems. They are engaging in time arbitrage.

Time arbitrage is described as buying stocks that have disappointed investors and sold off and then holding them until they recover. Now, I have traded a lot of arbitrage over the years. I have, and still do, engaged in risk arbitrage. I have done pair-trading to exploit discrepancies. I used to do A and B share arbitrage on a regular basis. In arbitrage, I was always trying to lock in an apparent price discrepancy by buying one thing and selling the other. In the case of so-called time arbitrage, I am long the asset and long time. It's not arbitrage. I just bought something I think is cheap and plan to hold it until it's not cheap....463 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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