Who would guess that the modern sciences of behavioral economics and the psychology of decision-making owe their origin to a love affair (no, not sexual) between two men born early in the last century and so different that one could barely imagine them speaking to each other? Yet that is the story chronicled by the extraordinary nonfiction writer Michael Lewis …
There Was Nothing I Could Do – All the Correlations Had Suddenly Gone to One!
True long-term correlations don’t change so much, but realized correlations over shorter periods can be all over the map. This is what risk is, so plan for it! “There Was Nothing I Could Do – All the Correlations Had Suddenly Gone to One!,” with M. Barton Waring, The Journal of Portfolio Management, Winter 2016.
What Would Minsky Do Now?
In the two decades since his death, Hyman Minsky’s stature has grown enormously. He foresaw the great financial crisis of 2007-2009, and economists routinely refer to “Minsky moments” as the tipping point when seemingly stable financial markets collapse with catastrophic consequences. It’s instructive to speculate on how Minsky would view our post-crisis economic recovery, and a new book …