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An inspiration engine for ideas
Weigh second- and third-order consequences.
Ray Dalio • Principles: Life and Work
Camera.” In finance, when people start to notice patterns in markets, they trade on them and can create a positive-feedback loop, exaggerating their effect. Bill Miller later reminded us that the practice of arbitrage in markets can do the opposite and create a dampening feedback loop.
W. Brian Arthur • Complexity Economics: Proceedings of the Santa Fe Institute's 2019 Fall Symposium
rapacious
Michael Crichton • Jurassic Park: A Novel
More Than You Ever Wanted To Know About Volatility Swaps
Explores volatility and variance swaps, their properties, uses for trading and hedging volatility exposure, and methods for replication and valuation using options, while addressing practical challenges and implications of volatility skews.
emanuelderman.com
Since that is the case, any sovereign borrowing strategy that does not implicitly assume a fairly neutral position about the direction of credit spreads can involve a significant increase in volatility—and hence in the probability of distress.
Michael Pettis • The Volatility Machine
Be precise in what you’re talking about to avoid confusion.