Friday, April 17, 2020

MPT assumes that there are no structural Changes...

"Nothing changes so you just punch in the data and you optimize A robot can compute Markowitz. That's what consultants have been doing for 40 years, optimizing for the correct portfolio. But tht's wrong, Brock says. Instead, you need to constantly change the portfolio to keep it in lone with the structural changes going on in the world.

Tuesday, April 7, 2020

The Times Are Changing...

Whatever it is, coronavirus has made the mighty kneel and brought the world to a halt like nothing else could. Our minds are still racing back and forth, longing for a return to "normality" , trying to stitch our future to our past and refusing to acknowledge the rupture. But the rupture exists. And in the midst of this terrible despair, it offers us a chance to rethink the doomsday machine we have built for our selves. Nothing could be worse than a return to normality. Historically, pandemics have forced humans to break with the past .....

Tuesday ~ April 7, 2010

Before you know what kindness really is
you must lose things,
feel the future dissolve in a moment
like salt in a weakened broth.
What you held in your hand,
what you counted and carefully saved,
all this must go so you know
how desolate the landscape can be
between the regions of kindness.

(Naomi Shihab Nye, b. 1952)

Monday, April 6, 2020

IT's the Environment Stupid!

Valuations are dependent on the Current Environment... and the environment is Changing!