There is a joke in academic finance that goes something like this: two economists are walking down the street when one spots a twenty dollar bill on the ground. He reaches for it, but the other stops him. “Don’t bother,” he says. “If it were real, someone would have already picked it up.” This is, […]
How to Profit from Markets That Are Technically “Efficient” Read More »
There is a strange thing that happens when everyone in a room gets smarter at the same time. Nobody gains an advantage. The room just gets louder, faster, and more competitive, but the relative distance between people stays roughly the same. Or it shrinks. This is the core tension behind one of the most debated
The Paradox of Skill: Why Markets Get More Efficient as We Get Smarter Read More »
Mathematics is supposed to be clean. One plus one equals two. Always has, always will. Except when it comes to compound interest, where one plus one somehow equals three, then five, then eight, then numbers that make your calculator question its own existence. This isn’t magic. It’s not even a trick. It’s just that we
1 + 1 = 3: The Illogical Logic of Compound Interest Read More »
Harry Markowitz won a Nobel Prize in 1990 for work he published in 1952. That work, Modern Portfolio Theory, changed how we think about investing. Now, seventy years later, a technology he could never have imagined is forcing us to reconsider what his theory actually means. Bitcoin presents a peculiar challenge. It behaves nothing like
The Bitcoin Problem: Where Does Crypto Fit into a Modern Portfolio Theory Strategy? Read More »