The Death of Risk
That taste for outsized risk has seeped into everyday culture. Wage growth has severely lagged compounded capital, causing ordinary people to increasingly see their best shot at real upward mobility in negative EV jackpots. Online gambling, 0DTE options, retail meme stocks, sports betting, and crypto memecoins all testify to the phenomena of expone... See more
thiccy • Tweet
The interesting thing about financial markets is that so many systematic strategies are operating today. The reliance on experience and discretion is becoming less and less of the overall makeup of things. Passive flows are obviously taking over a lot and the active space is turning more systematic. To be fair, the market has become significantly m
... See moreCapital Flows • Brainstorms: Creativity and Complexity
Today, we don’t have the same level of risk tolerance. People want an extremely high level of safety, but they don’t realize we can be too conservative. Being too conservative on safety actually leads to systemic risk. Systemic risk happens when you stop taking risks and get stuck with a system that no longer improves.