Ep. 548: More New Trend Following Book with Michael Covel
Michael Covel's Trend Following
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The Myth of EMT Madness
Harding is a flat out financial heretic and would not be offended if you called him a punk rocker for his anti-establishment attitude. He knows that to question EMT is seen as madness by academics, banks, pension funds and endowments. Harding goes further, explaining EMT madness in an every man way. The theory of rational markets treats economics like a physical science, like Newtonian physics, when in fact it is a human or social science. Human beings are prone to unpredictable behavior, to overreaction or slumbering inaction, to mania and panic. Markets that reflect this behavior do not assume some super human wisdom. They can and sometimes do reflect that volatility
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