What this means is that trade opportunities in small, obscure, illiquid niches of financial markets are not exploited by the big fish and so could remain “open” for a long time.
Could you give examples of what you mean that existed a few years ago and that are now exploited, so that no further money can be made and you don’t lose something be openly sharing the information?
I’m not sure that hiring a bunch of people to do annoying phone calls is what Lumifer has in mind when he talks about trading opportunities in illiquid niches of the financial markets.
Could you give examples of what you mean that existed a few years ago and that are now exploited, so that no further money can be made and you don’t lose something be openly sharing the information?
During the 80′s and 90′s a number of firms sprouted up around buying and selling penny stocks via strategies like cold calling.
I’m not sure that
hiring a bunch of people to do annoying phone callsis what Lumifer has in mind when he talks about trading opportunities in illiquid niches of the financial markets.Here’s an example that did not scale well: The New York Time Magazine: Paper Boys
I don’t think that the article says something about problems that come with scale. It rather suggests that the first attempts were lucky.
There are also ethical issues with the business model of buying up debt and then hiring ex-convicts to collect that debt.
Another, much smaller, example.
Edit:typo.
I don’t think that’s an example of someone investing money into an asset. It’s a bet on default rates not changing.