In this movie, it is revealed that the creators of this model were two Nobel Peace Prize winners in Economics in the year 1997. Through out this documentary, I was impressed by the manner in which the characters sought to highlight and build upon the key themes. For instance, these Nobel Prize winners are noted to have engaged the formula which seemed to have worked well for them until 1 year later when their Long Term Capital Management hedge fund collapsed thus, forcing them to stagger with a debt of $100 billion. In this regard, it is prudent to note that apart from all the speculations that have been aired regarding the same, the collapse was due to a significant leverage in the strategy which they employed. So basically, I noted that the whole concept in this documentary was about the failure of the Long Term Capital Management hedge fund in the year 1998.
First, the movie started by describing the stock exchange market at that particular time in relation to the psychological views that were held by different traders of the same market. More particularly, I am impressed at this point by the argument of how traders sell in the market. For instance, the fearful ones are seen as rushing in to sell all their stocks, a clear contrast of the greedy buyers who rush in to buy and accumulate the same stocks for speculation purposes. Thus, this behavior depicts the market as one purely based on irrational emotion. In my view, this notes that should a trader be willing to walk the path of success in the market, he would need to master the public’s psychoanalysis opinion on the nature of the market. Through this, a trader can be able to correctly predict the market movements and benefit from them (Beaudreau 70).
However, as the movie progresses, the notion above is greatly contrasted by the views of academicians who perceive the stock market as a random walk with no defined or precise method to predict its