Japanese Wisdom

It is interesting where you come across little points of history that are applicable to trading. I was rereading a Japanese poem about three of Japan’s most famous warlords and a hototogisu. The hototogisu is a small songbird and is also known as the lesser cuckoo – a much more boring description that the Japanese…

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Taleb

A bit of a chat with Nassim Taleb – the author of Fooled by Randomness and Black Swans. I have never really been one of Talebs fans since Fooled by Randomness seemed to be a long series of self justifications as to why he couldn’t trade. The central undercurrent of the book seemed to be…

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Predicting the Improbable

Excellent paper by VoxEU.org on behaviour around what are considered improbable events. Predicting the improbable Claus Bjørn Jørgensen Sigrid Suetens Jean-Robert Tyran 22 April 2011 Japan’s trio of tsunami, earthquake, and nuclear disaster has left the world stunned. As this column points out, even the experts were shocked. But while these events were highly unlikely,…

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Explainations

I always find it intriguing that fund managers have to go to such lengths to justify their stance on issues – the interesting point is most of it seems like after the fact rationalisation. This is an example of such long winded thinking, unfortunately it also contains that the use of rational economic thinking to…

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Sheep

Someone dropped this wonderfully insightful image into my inbox this morning. Apparently  it dates back to 1908 – my interpretation of this is that sheep, be they those who just follow or those without a committed opinion get run over by those that do when markets begin to move.