How to Increase Global Wealth Inequality for Fun and Profit

5 Pages Posted: 12 Nov 2018

Date Written: November 12, 2018

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.

Keywords: wealth inequality, price impact, algorithmic trading, overnight returns, market closure, anomalies, transaction costs, portfolio strategies

Suggested Citation

Knuteson, Bruce, How to Increase Global Wealth Inequality for Fun and Profit (November 12, 2018). Available at SSRN: https://ssrn.com/abstract=3282845 or http://dx.doi.org/10.2139/ssrn.3282845

Bruce Knuteson (Contact Author)

Independent ( email )

No Address Available

HOME PAGE: http://bruceknuteson.com

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