Harshawardhan Deshpande's Page

I am quite surprised that no one really talks about stagflation danger faced by USA.


"Pimco’s Gross Buys Treasuries Amid Deflation Concern "
http://www.bloomberg.com/apps/news?pid=20601087&sid=aEHQiqgK1vdQ

I understand that Gross is only making a hedge. However, I do feel that he like most of the other people fails to take stagflation seriously.

The stagflation scenario will come true if USA starts sinking into the deflationary environment but not rest of the world.

Not that I blame him… Continue

(I have made some important changes to my post written in July 2009, the whole piece is reproduced below along with the revision)

(There are a considerable number of pages that explain how this ‘oscillators’ is calculated so I am not going to explain the basics)

It is very important to remember what ‘Stochastic Oscillator’ does. All it tells us is where we are today as compared to the highest high and lowest low in the last 14 periods.

The basic principle behind this calculation is that there… Continue

I have been struggling for quite some time over what exactly is Brownian motion and further what is ‘Geometric’ Brownian motion. If I asked I could have possibly explained what these concept mean but back in my heart I did not really understand what these concepts stand for.
Finally I made some break through today. What I am going to say sounds pathetically simple but that is exactly what this blog is for …Stochastic Calculus for Dummies.

read on...http://www.systomatics.info/?p=472

It has been a long time since I updated this blog series on Stochastic Calculus. The primary reason for the absence was the horrible work load that I faced during the last 2 months. However, to be really honest, I was also stuck with Ito’s Lema. I have now realized that I was moving too fast and I still need to cover some basic ground before jumping on to higher concepts.
So this blog is about “Central Limit Theorem”

http://en.wikipedia.org/wiki/Central_limit_theorem defines central limit theor… Continue