Charlie Q. Yang, Ph.D., CFP®, AAMS®
Founder of American Financial & Investment Education Alliance
(developing independent research and education content for investors since 1996)
(developing independent research and education content for investors since 1996)
The general understanding of the financial industry has been that return and risk are real and fundamental. We all have been positive for the capital market descriptions by Nobel Prize-winning works. That led us to believe that the modern portfolio theory and related research are accurate descriptions of the market.
Many of us have seen evidence that return and risk are not fundamental and just derived concepts. In 1995 when I discovered how flawed the bell-curve could become when being used as a statistical model, I started to question the financial industry’s academic foundation. What Wall Street has been using are all the derived measures from the flawed theory. They are just emergent ideas and all built on over-simplified assumptions on their roots. They can be so easily misused and even cause a financial crisis.
My research passion is to discover the scientific principles governing each trading tick’s movement (similar to atoms in physics). I have committed to capturing my findings through the framework named the Capital Market Behavior Theory. After the engineering system I developed validates each of my discoveries, we will finally understand the actual fundamental ingredients that make up our investment concepts of return and risk.
Many of us have seen evidence that return and risk are not fundamental and just derived concepts. In 1995 when I discovered how flawed the bell-curve could become when being used as a statistical model, I started to question the financial industry’s academic foundation. What Wall Street has been using are all the derived measures from the flawed theory. They are just emergent ideas and all built on over-simplified assumptions on their roots. They can be so easily misused and even cause a financial crisis.
My research passion is to discover the scientific principles governing each trading tick’s movement (similar to atoms in physics). I have committed to capturing my findings through the framework named the Capital Market Behavior Theory. After the engineering system I developed validates each of my discoveries, we will finally understand the actual fundamental ingredients that make up our investment concepts of return and risk.
One serious problem in our financial industry today is lacking scientific standards and practical tools to uncover many flawed investment strategies. Informed investors must empower themselves and learn how to measure the added value, if any, of their investment advisory to prevent losses due to misleading claims and fees.
- Charlie Q. Yang (1996)
My earlier professional experiences prior to 2003 were documented at
American China International Business Association (ACIBA)
American China International Business Association (ACIBA)
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