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arXiv:1811.04994econ.GN

How to Increase Global Wealth Inequality for Fun and Profit

Bruce Knuteson

Abstract

We point out a simple equities trading strategy that allows a sufficiently large, market-neutral, quantitative hedge fund to achieve outsized returns while simultaneously contributing significantly to increasing global wealth inequality. Overnight and intraday return distributions in major equity indices in the United States, Canada, France, Germany, and Japan suggest a few such firms have been implementing this strategy successfully for more than twenty-five years.

arXiv comments
5 pages
Journal reference
DOI
Subjects
econ.GNGeneral Economics q-fin.TRTrading and Market Microstructure

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Linked by 2 identifiable commenters in 2 comments across 2 threads, from Jan 2022 to Feb 2023. Found in 3 HN submissions from Nov 2018 to Dec 2019. Open submission discussions.

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Discussed in comments2 threads

  1. They say that stocks go down during the day and up at night 1 comment

    • I haven’t seen the original source that proposed this cited here yet. Here is the explanation on ArXiv: https://arxiv.org/pdf/1811.04994.pdf

      beowulfeyView on HNParent context

  2. They Still Haven't Told You 1 comment

    • The author's earlier paper explains more clearly exactly what the firms in question are doing and how they profit from it: https://arxiv.org/abs/1811.04994 The first page suffices to get the idea.

      spekcularView on HNParent context

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