Those things that make the least sense are where you discover opportunity, risk too. They are opposite sides of the same thing: Change.
So any truly interesting conversation explores things that boggle the mind. My favorite enigma in the physical world is quantum entanglement, which I’m convinced hints at something utterly extraordinary. But I leave that mystery to those a million times smarter, which frees my time to search for things that might make money. Sounds shallow. Empty. I know. Mara reminds me often. But the human mind is the universe’s greatest enigma and when you connect 8.5bln of them the possible futures are more uncertain than any particle being split at CERN. When put that way, exploring the profound uncertainty flowing from mass human psychology seems less meaningless.
That’s not to say things always appear uncertain. Most of the time, tomorrow looks indistinguishable from today. Which is to say, boring. During those periods, leveraged investment strategies that bet on recent correlations persisting well into the future tend to do well. So in recent years, when massive firms built upon such strategies struggled for reasons few could quite explain, it was a sign of change. Risk. Opportunity. Read more…..
Chart of the Day
It’s been a volatile few months for bitcoin. In January 2021, it surged past $40,000 a coin but has since fallen sharply from its record high. Skeptics worry bitcoin is in a bubble, but Wall Street giants like Citi and JPMorgan think the cryptocurrency still has a lot of room to run higher.