Sublime

smallest portion of Yale’s endowment is targeted to deflation hedging assets—7.2 percent, well below the 12.7 percent allocation of the average university endowment:

Dr. Schelling’s phrasing has to be counted as unfortunate, and in no sense is the stock market a great gambling enterprise like a lottery. But it is an exercise in mass psychology, in trying to guess better than the crowd how the crowd will behave.

For these reasons, prices may pass statistical tests for randomness, but they are not themselves random (although it is plausible that their randomness is random, and that randomness is random, and so on) but rather are unpredictable on the basis of market data alone. They are, however, predictable to the extent that the predictor accurately assess

publicly visible.

Hyman Philip Minsky (b. 23 September 1919, d. 24 October 1996) was best known for his Financial Instability Hypothesis of the business cycle, which emphasized the dynamics of business investment finance as a recurring cause of macroeconomic instability (Minsky 1972, 1980). During a boom, the expansion of debt-financed investment spending causes ini

Yet passive investing destroys the price discovery process. No risks are taken and no investments are made based on a determinate vision of the future, because all that matters is the size of a stock or derivative and whether it will get included or excluded from an index. As a result, financial markets have become homogenized, dominated by a few p

so deeply uncomfortable saying, “I don’t know” or “it depends,” especially in finance.