All Epsilon Theory Content

All Epsilon Theory Content

 

Everything we have published at Epsilon Theory since 2013, an archive of more than 1,000 evergreen notes.

Never Run the Same Gag Twice [The ET Zeitgeist]

By Ben Hunt | May 28, 2019 | 1 Comment

It’s the best line in a movie full of great lines: You don’t run the same gag twice. You run the next gag.

Elon Musk is running the next gag.

A Song of Ice and Fire

By Ben Hunt | May 27, 2019 | 13 Comments

We are the human animal.

We are non-linear.

We ARE a song of ice and fire.

It’s a song that has built cathedrals and fed billions and taken us to the moon. It’s a song that can do all of that and more … far, far more … if only we remember the tune.

The Pack remembers.

A Holy Day

By Rusty Guinn | May 27, 2019 | 3 Comments

If Memorial Day is anything, it is a day for telling and re-telling stories about Full Hearts. Let me tell and re-tell you the story of Milton Lee Olive III.

The Holiday Zeitgeist – 5.26.2019

By Rusty Guinn | May 26, 2019 | 3 Comments

It’s the Holiday Weekend Zeitgeist! In which we see an election season Narrative make its way into other topics, hear the FDA’s plans to deal with expiring salt, hear from local man about local bear, hear from local man about local swimming hole, begin to doubt our judgment about the political import of impeachment proceedings, and read some perverse New York Times fanfic.

Going Gray

By Ben Hunt | May 23, 2019 | 2 Comments

Huawei Founder Says U.S. Won’t Disrupt Business As Analysts Warn Of Sales Slowdown [Forbes]

Narrator: The cause-and-effect was, in fact, that simple

By Ben Hunt | May 23, 2019 | 0 Comments

The Fed Is Likely to Make an ‘Insurance’ Rate Cut [Bloomberg]

The Zeitgeist – 5.22.2019

By Ben Hunt | May 22, 2019 | 5 Comments

Retirement plan menus are ground zero for what is delightfully referred to as “choice architecture” … steering and Nudging you into making the “right” choice.

Ad men understand choice architecture. So do mob bosses. It’s all about creating a Hobson’s Choice … a choice that’s no choice at all.

It’s not a Wheel. It’s a Carousel.

The Zeitgeist – 5.21.2019

By Ben Hunt | May 21, 2019 | 2 Comments

“According to the Aspen Institute, close to 6 in 10 working-age Americans do not have a retirement account. Sadly, the Aspen Institute also warns that things are likely to get worse due to the changing nature of work.”

The American worker is the proverbial boiled frog. Or Milton from Office Space. Same thing.

The Zeitgeist – 5.20.2019

By Ben Hunt | May 20, 2019 | 1 Comment

The best part of Robert Smith’s pledge to repay student loans? The pressure this puts on other billionaires when they get an invite from alma mater.

Then again, most billionaires are high-functioning sociopaths, so they truly believe that their words and moving speeches are reward enough for graduates. 

A Clear Eyes / Full Hearts Story

By Rusty Guinn | May 19, 2019 | 1 Comment

I like to think that we do a good job responding to our readers’ questions. If we have a weak spot, however, I know where…

The Weekend Zeitgeist – 5.18.2019

By Rusty Guinn | May 18, 2019 | 3 Comments

It’s the Weekend Zeitgeist! In which anti-Semitism raises its ugly head (again), the iconoclasm debate joins the fray (again), we stress about the gig economy, observe a campaign that doesn’t fit the narrative, explain away funeral cost increases and finally – finally! – hear the true story of…sky penis?

The Life Aquatic

By Demonetized | May 17, 2019 | 1 Comment

New from ET contributor Demonetized … how do you handle a counterparty that has engineered a Heads I Win, Tails You Lose investment?

You must be able to hurt your counterparty for realz. No matter what the docs say.

Or in the immortal words of Steve Zissou, “What about my dynamite?”

The Zeitgeist – 5.17.2019

By Ben Hunt | May 17, 2019 | 1 Comment

That’s a live shot of me today, reading an important and useful paper by a Fed economist. Seriously.

Also, a Mr. Wonderful bot, and Bill de Blasio winning those Midwestern hearts and minds one camo-wearing diner patron at a time.

The Zeitgeist – 5.16.2019

By Rusty Guinn | May 16, 2019 | 5 Comments

It’s the Thursday Zeitgeist, from sporadic United Wi-fi, high in the air above all of you. Today is about bank cartoons, the warm afterglow of an industry conference that ‘really shook things up’, the drumbeats of value, a reminder to ask ‘why am I reading this NOW’ and some trade war trading advice we can (mostly) get behind.

The Zeitgeist – 5.15.2019

By Ben Hunt | May 15, 2019 | 4 Comments

Preparing today’s Zeitgeist, I couldn’t stop staring at this picture of Larry Kudlow.

There’s a famous body of work on how serving as President ages you in office, and I’ve got some examples of that here in the note.

My strong sense of the Trump White House is that The Donald will look exactly the same when he leaves as when he entered. It’s the people working for him that age in dog years.

The Zeitgeist – 5.14.2019

By Ben Hunt | May 14, 2019 | 8 Comments

I’m old enough to remember the Asian financial crisis of 1997, and what happened to the Vietnams of the world the last time we had a shock currency devaluation.

I’m old enough to remember Q4 2015, and what happened to the Vietnams of the world the last time China started threatening a currency devaluation.

It was Barzini all along.

Office Hours – 5.14.2019

By Rusty Guinn | May 14, 2019 | Comments Off on Office Hours – 5.14.2019

Ben and Rusty discuss games of chicken and multi-level games, and where we think the previously complacent trade and tariffs narrative has gone in early May.

In the Flow – You Are Here, May 2019

By Ben Hunt | May 13, 2019 | Comments Off on In the Flow – You Are Here, May 2019

Each month we update our five narrative Monitors and summarize the main findings from each.

The big reveal for May? There’s a tremendous amount of narrative complacency out there, particularly on Trade and Tariffs, which means this market has a long way down if the narrative focuses on negotiation failure. It’s not focusing there yet, but that’s what you want to watch for.

The Zeitgeist – 5.13.2019

By Ben Hunt | May 13, 2019 | 2 Comments

Cheer up, farmers! Sure, you f’d up by trusting our current frat house leadership, but I’m sure that the crack team at USDA has a great plan in the works to buy up all your soybeans and corn and give it away to the poors.

Will that work?

Hey, it’s gotta work better than the truth.

The Weekend Zeitgeist – 5.11.2019

By Rusty Guinn | May 11, 2019 | 1 Comment

It’s the Weekend Zeitgeist, where we leave the world of finance for a day, in which high costs of credit and criminal justice remain top-of-mind concerns, Bulgaria stems the tide of its brain-drain, Reuters publishes straight opinions as news, Stephen Moore goes on Glassdoor, and we all succumb to the collective solipsism of nostalgic reverie.