“Financial Economics, I argue, did more than analyze markets; it altered them. It was an ‘engine’ in a sense not intended by Friedman: an active force transforming its environment, not a camera pas…| Convex Strategies
“Situations of uncertainty and intractability rule out optimization and, along with it, the usefulness of the theory of maximizing subjective expected utility.” Gerd Gigernzer, November 2024. The r…| Convex Strategies
“The products are gaining traction because the buyers don’t have to mark them to market, thus avoiding the possibility of booking paper losses.” Japan Regulator Planning Crackdown on $6…| Convex Strategies
We have pointed to similarities between the Fed’s current rate cutting cycle and the one back in the second half of 1995. Given the length of experience around here, we are regularly asked question…| Convex Strategies
To the best of its knowledge and belief, Convex Strategies considers the information contained in this website as accurate only as at the date of publication. All information and opinions on this w…| Convex Strategies
“The Governing Council today decided to lower the three key ECB interest rates by 25 basis points. Based on our updated assessment of the inflation outlook, the dynamics of underlying inflation and…| Convex Strategies
Nassim Taleb introduced the concept of Wittgenstein’s ruler in the first book of his Incerto series, “Fooled by Randomness: The Hidden Role of Chance in Life and in Markets”. He elaborated on the c…| Convex Strategies
“Do you know the secret of life? One thing. Just one thing.” Curly Washburn. City Slickers, 1991. We find this a very useful, and accepted, philosophy when it comes to risk management of any activi…| Convex Strategies
Last month, in our February 2023 Update, “Sharpe World is Nefarious”, we posed this question: “If a bank loses money in accrual books and can continue to fund the losses with government guaranteed …| Convex Strategies
