[YouTube] Ellipticality (Technical)

Modern financial theory assumes that distributions are elliptical. We show what happens if the assumption doesn’t hold. And the assumption doesn’t hold.

Diversification does NOT reduce risks in the financial market; it causes near-certain long term blowups under any leverage.

One comment

  1. The word Diversity itself is very slippery. It depends on how things are categorized. e.g. does a diverse garden have many kinds of roses? or does it contain one palm tree, one palm tree from Samoa and a rose bush? or does it have a 1000 year old olive tree and some newly plated petunias. Which is the more diverse?
    Diverse is one of the nodding words. Bring it into a conversations and everyone nods on agreement without every actually agreeing. Financial advisors know the power of the word. Try getting a measurable definition from them.

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