We're Hiring!

Second Foundation Partners is looking to hire for three new positions!

Please check out Careers at Epsilon Theory for more details, and please distribute the link to anyone you think might be interested!

New Home Top 5

The Four Horsemen of the Great Ravine, Part 1

By Ben Hunt | 17 Comments

Every so often, things fall apart.

In the words of those who lived it, here are the vibes and the semantic signatures of the twentieth century’s most devastating social collapses.

From the meaning in their words, wisdom for our future emerges.

Why Am I Reading This Now? 01.13.24

Recent major media stories that feel to us like they’re part of a larger narrativ‌e campaign.



Why Am I Reading This Now? 01.06.24

Recent major media stories that feel to us like they’re part of a larger narrativ‌e campaign.



Why Am I Reading This Now? 12.30.24

Recent major media stories that feel to us like they’re part of a larger narrativ‌e campaign.



Why Am I Reading This Now? 12.23.24

Recent major media stories that feel to us like they’re part of a larger narrativ‌e campaign.



Why Am I Reading This Now? 12.16.24

Recent major media stories that feel to us like they’re part of a larger narrativ‌e campaign.



This is an exclusive subscriber-only preview of the first six chapters of Rusty Guinn’s upcoming book Outsourcing Consciousness: How Social Networks are Making Us Lose Our Minds. The book explores how evolution, polarization, and technology are slowly transforming humanity into a hive mind - and what we can and can't do about it.

The Long Now is everything we pull into the present from our future selves and our children. We are told that the economic stimulus and the political fear of the Long Now are costless, when in fact they cost us … everything.
Tick-tock.

Men of God in the City of Man is a nine part series about a Narrative virus that infected the charismatic and Pentecostal churches in the United States. It isn't a story about Christian Nationalism. It isn't a story about January 6th. It isn't a story about why people voted for Trump. It is a story about a story. It is a story about the language that created a self-sustaining movement defined by its unwavering belief in a fundamentally corrupt electoral system.

Amid the Widening Gyre of politics and the black hole of financial markets, the only anchor is us, together, walking with Clear Eyes and Full Hearts. Experience Ben's original 4-part series.

Recent Notes

What Do We Need To Be True?

By Rusty Guinn | April 6, 2021

Modeling Common Knowledge by analyzing Missionary statements and their reverberations works. Except when it doesn’t.

A Tiger Can’t Change Its Stripes

By Ben Hunt | March 30, 2021

What do you get when you give a Raccoon billions of dollars AND invisibility from regulators? Collusion and insider trading.

Hot and Cold

By Rusty Guinn | March 23, 2021

Most of us are under the impression that a protracted conflict within China will increase national unity. Not this time.

The Best Way to Rob a Bank

By Ben Hunt | March 9, 2021

I think that the collapse of Greensill Capital has a lot of systemic risk embedded within it, particularly as the fraudulent deals between Greensill and its major sponsors – Softbank and Credit Suisse – come to light.

This is the first Big Fraud I’ve seen in 13 years with the sheer heft and star power to ripple through markets in a systemic way. Not since Madoff.

A Freaky Circle

By Rusty Guinn | March 9, 2021

Excessive complexity in a deal or structure isn’t necessarily nefarious, but it also isn’t a good sign. The distraction and confusion you and I feel reading about these deals is usually not the problem.

It is the point.

A Change in the Water

By Ben Hunt | March 3, 2021

Increasingly, the common knowledge of our investment world – what everyone knows that everyone knows – is that inflation is a problem and you should be focused on it.

The Opposite of 2008

By Ben Hunt | March 2, 2021

In 2008, the US housing market – together with a Fed that thought the subprime crisis was “contained” – delivered the mother of all deflationary shocks to the global economy.

In 2021, the US housing market – together with a Fed that thinks inflationary pressures are “transitory” – risks delivering the mother of all inflationary shocks.

The ET Pack is going to figure this out … together.

The Third Rail Switch

By Rusty Guinn | February 23, 2021

In the same way that narrative shaped a conversation about the role of police going forward in 2020, narrative can shape a conversation about the role of teacher unions and public sector unions more broadly. My money is still on the status quo, but I’ve been wrong before.

Danish Food-Safety Expertise for the Win

By Ben Hunt | February 10, 2021

WHO beclowns itself with its “fact-finding mission” to Wuhan.

Hammers and Nails

By Rusty Guinn | February 8, 2021

When we talk about bias, we usually think about a political bias. But the world of 2021 now supports persistent idiosyncratic biases and frames through which information is passed. How do we ensure that our information consumption habits account for this?

Hunger Games

By Ben Hunt | February 4, 2021

You have been told that the odds are ever in your favor. You have been told this for your entire life. More and more, you suspect this is a lie.

You have been told a new story. A brave story. That by banding together and acting as one, you can “democratize” the stock market. Today, as you see the collapsing stock prices of the companies you supported, you suspect that this was a lie, as well.

The Invulnerable Hero*

By Rusty Guinn | January 28, 2021

No, the real story here probably isn’t about a revolution against Wall Street. But that doesn’t mean that there isn’t an opportunity to build a movement – right now – to transform it toward fair, free and open markets.

The Zimbabwe Event

By Ben Hunt | January 27, 2021

The South African variant virus (501.V2) is not the immediate threat to the United States as the UK variant virus (B117). But 501.V2 has the potential to create a far more powerful narrative – vaccine resistance – that can have a greater market impact than the more pressing issues of B117.

More and more, I think the variant viruses create a tradeable event for markets.

For Leon Black is an Honorable Man

By Ben Hunt | January 26, 2021

O judgment! thou art fled to brutish beasts,
And men have lost their reason. Bear with me;
My heart is in the coffin there with the American dream that once was,
And I must pause till it come back to me.

A Different Game

By Rusty Guinn | January 21, 2021

The light research poured into sentiment analysis misses one rather important fact: that’s the game we used to play. Today’s Fiat News is a different game altogether.

UK-Variant SARS-CoV-2 Update

By Ben Hunt | January 20, 2021

The spread of B117 in a Covid-fatigued country like the US is a profoundly deflationary, risk-off, dollar higher, flight to safety event in real-world.

Does it matter to market-world?

The Ireland Event

By Ben Hunt | January 12, 2021

I believe there is a non-trivial chance that the United States will experience a rolling series of “Ireland events” over the next 30-45 days, where the Covid effective reproductive number (Re not R0) reaches a value between 2.4 and 3.0 in states and regions where a) the more infectious UK-variant (or similar) Covid strain has been introduced, and b) Covid fatigue has led to deterioration in social distancing behaviors.

Reap the Whirlwind

By Rusty Guinn | January 11, 2021

There is a brief window where I think we have the opportunity to commit to building a common national identity together. Seizing this opportunity will mean leaving a lot of anger we will feel is entirely justified at the door.

Not seizing it, I fear, will mean that we all reap the whirlwind.

“Suicide Bomber” vs suicide bomber

By Ben Hunt | December 29, 2020

On Christmas Day, Nashville was attacked by a suicide bomber terrorist. But not by a “Suicide Bomber”. Not by a “Terrorist”.

Why not? Because his terrorist goals didn’t fit neatly into a useful political narrative like “Antifa!” or “Proud Boys!”

Here’s what this looks like in The Narrative Machine.

The ZIRP Paradox

By Rusty Guinn | December 14, 2020

It may seem ironic that a narrative about the long-term could be deployed to distort the rewards of effective, market-based long-term capital allocation for short-term benefit.

This is, I think, the heart of The ZIRP Paradox:

The myth of infinite horizon investing is the enemy of long-term investing.