In baseball and in investing and in life, we often miss the obvious truths that are staring us in the face. Sometimes that delusion is willful and sometimes it is accidental.
Nowhere is the cartoonification of data more obvious than in the construction and publishing of labor reports, and nowhere is it more influential on markets and politics.
Part 2 of a three-part series on what it means to have a polarized electorate and a monolithic market. Today’s note: How do things fall apart in a monolithic market? Not with a bang but a whimper.
So many words and ideas are effectively unusable today, because it’s impossible to use them without triggering readers. It’s a whirlwind brief of centrifugal…I mean, centripetal force.
Friedrich Hayek was a keen observer of the human condition, particular in the era of the Strong Man. He was an even keener observer of the use of Narratives to exploit that human condition.
A portfolio is, after all, a vessel. It is a container for our financial investments, and what we leave OUT of that container is every bit as important as what we put IN.
Catching up on correspondence with some notable reader emails. In this edition, we take a look at some reader responses to the recent note ‘Letters from a Birmingham Museum.’
Climbing a wall of worry is the least understood and most powerful crowd behavior of a bull market. When there’s no real information, we create it by conquering artificial hurdles and challenges.
The OG Epsilon Theory reading list, now 4 years old. Luckily the classics never change. (Ed. Note: This is true, Ben, but not an excuse to keep quoting The Godfather) (Ed. Ed. Note: Got any more LOTR quotes, Rusty?)
Teaser: What do Tesla, crypto, and men-who-wear-hats all have in common? They’re all driven by fashion, which is another word for the Common Knowledge game.