How Markets Work
Investing Is Biology Not Physics
Markets evolve and adapt. Be careful extrapolating from the past.
How Markets Work
Markets evolve and adapt. Be careful extrapolating from the past.
How Markets Work
The distribution of the stock market is different than the distribution of stocks
How Markets Work
This is an example of a broad question we should always ask ourselves: "what would the random version of some process look like?"
How Markets Work
Is it possible that factors overexplain excess performance?
How Markets Work
Our instincts about the role of correlation are not well-tuned
How Markets Work
When "disagreeable" is an adaptive trait
Risk and Edge
Possible pitfalls of thinking in percents with ratios
Options and Volatility
The arithmetic behind how increased volatility reduces average compounded returns
How Markets Work
What high prices beg for
Risk and Edge
Compute the amount of dollars required to rebalance a levered exposure
How Markets Work
The brutal arithmetic behind shorting
How Markets Work
Leases are options with an embedded cost of carry