And any other institutions that deals with payments. They don't need to calculate em cars, next to Walmart, or overstock in shelters. Dalio said : ,,..based on returns day by day, by hour or even - minute by minute'' And all of those transactions are done via cards and digital numbers. Returns, minute by minute, second by second... They will be aware of those earnings showing up, way-before the public gets em to see. Banks proportionally increasing/decreasing positions in certain equities, receiving fresh data in nano speed, while folks play on earnings. Good riddance.
Yes, in this regard, banks have a very favorable position. But in order to capitalize on this, you need to understand the essence and technology of their work. Otherwise, it’s possible to remain a clerk.
I agree, tho, not trying to do that, just thinking out loud & got different approach. Always sharing these types of thoughts, whenever they fall out of the unconscious mind and it's worthy to do so. (don't want to spam with nonsense, at least trying not to)
It's pretty instructive to become a lender on Prosper or Lending Tree and put some of your own money at risk. It makes the whole concept of risk and weighing the miniscule "Returns, minute by minute, second by second" to the potential loss of your principle very real in a way that just reading about it can't accomplish. Make a few loans, monitor them for a few weeks, and then come back and let us know if you feel the same.
Not sure that i follow. What i had in mind, - millions of transactions done in supermarkets or via net. I can see in my bank account profile, for how much and where did i paid. Thus the bank could see, how many clients , e.g Walmart had, per specific period, and how much they have spend. Lower numbers > less earnings. They see it prior earnings come out. By the time it goes public, they already could have changed their position size. Those platforms accept ,,second hand clients'' (most of the time), since they got rejected by banks. Ain't gonna be a good data, that comes out of a higher risk group.
Also perhaps instructive to learn a little bit about how payment processing networks work, who owns them, and how those are connected to other areas of the bank, and what the Volcker Rule is. Which specific prop trading group and which specific bank do you have evidence is doing this, or even suspect is doing this? Once you do enough research to be able to answer specific questions like these, again come back and let us know what you've found. There are some firms who take advantage of this kind of legal insider knowledge but by and large they aren't banks. For example private equity firms that own pipeline networks can take advantage of their advanced knowledge of oil and gas flows. Similar stuff in electricity markets. But a bit more nuanced and difficult than you appear to think because you actually have to own big, complex operating companies as well as conduct financial transactions.
%% They do have advantages, Nobert; any business does with wisdom. Tech companies have some to; many of them, most likely , the way the tech stocks/ETF can % gain. And any business can do even better with '' gift'' cards- I was surprised how many of those do not get used...…………………………………………………………………………………………………………………….
I see. Just shooting in the dark until ,,something sticks'' . (sorta knew, that this was related to illegal activities, noneless had to take my chance, maybe, would come up with some sort of financial relativity theory or smthn haha)
I think this is one of the biggest avenues of big data research in finance today: mining credit card transactions for earnings predictions and other consumer behavior trends. I would be shocked if there weren't quant desks at banks purchasing this data and using it (any differently than a hedgefund). I doubt any bank is solely using its internal data as the industry is fragmented that you would probably not get a decent picture using just a small (and possibly biased) fraction of the universe.