Eric Falkenstein

Eric Falkenstein is an economist who specializes in quantitative issues in finance: risk management, long/short equity investing, default modeling, etc.

Eric received his Ph.D. in Economics from Northwestern University , 1994 and his B.A. in Economics from Washington University in St. Louis, 1987

He is the author of the 2009 book Finding Alpha.

Visit: Eric Falkenstein's Website

Eric Falkenstein's Latest Articles | 136

How to Alleviate Poverty

Jun 24, 2013| 

James Taranto discusses research on ‘pathological altruism’ in which attempts to promote the welfare of others instead result in unanticipated harm.... Read »

FX Carry Trade is Back

Mar 15, 2013| 

Uncovered interest rate parity suggests that currency returns should relate to interest rates in a pretty straightforward way. For example, the short-term interest... Read »

Health Care End Game Predictable

Feb 22, 2013| 

Ever notice how quickly the health care debate turns to insurance? It has long seemed to me that this is just a trick to advance redistribution under a different... Read »

Correlations in Down Markets Aren’t That Different

Feb 21, 2013| 

Many people assert that correlations totally break down in down markets.  I created a bunch of portfolios from the Russell 2000 going back to July 1962 using the... Read »

Gold/SPY Ratio a Puzzler

Feb 19, 2013| 

If Gold and the stock market are both geometric brownian motion, what are the odds of this pattern? It looks like there’s a clear trend from when the US closed... Read »

Why High Frequency Trading is Not a Problem

Feb 14, 2013| 2

Many people are concerned about the fact that some people can trade more frequently than they can due to having a large infrastructure of high speed computers and... Read »

Al Gore, Sociologists, Address High-Frequency Trades

Feb 11, 2013| 

Al Gore’s latest tome The Future warns us that: There are already several reckless practices that should be immediately stopped: the sale of deadly weapons... Read »

CBO Shenanigans

Jan 22, 2013| 

The US budget deficit has been large for quite a while, and there doesn’t seem to be a lot in terms of revenue increases or expenditure cuts in the pipeline.... Read »

Apple (AAPL) Stock: The Case for Up

Jan 2, 2013| 

With the VIX at lows, and central banks across the globe printing money at breakneck pace, it seems a great time to be long equities. Not that I think this is good... Read »

Cult of the Presidency

Dec 18, 2012| 

Watching the media’s anticipation of Obama’s press conference after the tragic school shooting in Connecticut, I was reminded of the great book The Cult... Read »

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