In the 1970s, interest rate modeling was used to predict moves in foreign currency markets as well as in sovereign debt. Hedge fund managers such as Paul Tudor Jones used large-scale demographic analysis to predict the equity market collapse of 1987 after comparing the market conditions of a similar crash in 1929. The 1990s saw the rise of global macro volatility trading which used geopolitical instability in both developed and developing nations to place directional bets on market movements.
During the 1970s, interest rate modeling was utilized to forecast changes in foreign currency markets as well as sovereign debt. Hedge fund managers like Paul Tudor Jones employed large-scale demographic analysis to predict the stock market crash of 1987 after comparing current market conditions to a similar crash in 1929. The 1990s witnessed the rise of global macro volatility trading, which used geopolitical instability in both developed and developing nations to make directional bets on market movements.