Maris Research

Insights into Risk: Taleb and Tyson

Share on facebook
Share on facebook
Share on twitter
Share on linkedin

Events that devastate the majority financially greatly enrich the few who bet on non-linear dynamics.

I see the same question in forums, threads, articles and emails: what can I do to protect myself and my family from whatever lies ahead?

Given the uncertainties and extremes that are so evident, recognizing risk is a useful first step, a recognition that is very much out of fashion. If we glance at the charts of margin debt (loans taken against one’s stock portfolio) which is at record highs, and short interest (bets that stocks will drop) which is at record lows, it seems the primary risk on investors’ minds is FOMO (fear of missing out) of all the fat, juicy guaranteed gains just ahead.

For the few still asking about the source of risk, the general answer takes one of two paths: inflation leading to hyper-inflation or a deflationary collapse of defaults and popping asset bubbles.

It’s easy to find pundits arguing for one or the other, but do we have the initial conditions, variables and functions we need to solve this problem and get a clear answer, inflation or deflation?

Consider two variables that are rarely visible in pundits’ arguments:

1) What will benefit

... continue reading 3rd party author's post at source website


Can't Get Enough Freebies? Subscribe to our Newsletter!

We will send you free research and analysis summarized at the end of each month.

Leave a Comment

Newsletter Sign up

Top Posts


What is Flywheel?


More Articles.

Oil & Gas Journal

Diversified to acquire Cotton Valley assets from Indigo Minerals

Diversified Gas & Oil PLC has agreed to acquire certain Cotton Valley upstream assets and related infrastructure primarily in Louisiana from Indigo Minerals LLC for $135 million (gross). The deal is a first for Diversified’s new central regional focus area where it expects to replicate its Appalachia region business. Diversified signed a purchase and sale

Read More »
FX Markets Staff

Singapore’s SWF starts work on cross-border payment network

Singapore’s sovereign wealth fund Temasek, JP Morgan and DBS Bank plan to develop a platform to streamline cross-border payments. The project follows the three organisations’ co-operation with the Monetary Authority of Singapore (MAS) on its central bank digital currency (CBDC) initiative. DBS Bank is a Singaporean bank that is essentially state owned; Temasek is its

Read More »

Get content like this sent directly to your inbox!

Follow OnceBurned

Share on facebook
Share on twitter
Share on linkedin
Scroll to Top