Ep. 515: Epic Trend Following Episode with Michael Covel
Michael Covel's Trend Following
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The Importance of Wildness in Economics
classical economics has no framework through which to understand wild markets, says DKT. When you remove a few of these rational assumptions and introduce market imperfections, then it's very easy to find situations where the rational equilibrium of economists is actually unstable. This is what we would call a crisis. So I think that the mathematical apparatus is there to allow us to not only describe, but anticipate to some extent, or at least make a space for crisis in the economic world. For me this is a fascinating topic on which we've been focusing in the last few years.
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