Ep. 500: Charles Faulkner Special with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
The Socialization of Risk
In the banking area, what happened there was that the banks were all trading the same algorithms. The idea being that if most of the people are doing it, it's probably pretty safe. This is a perfect sense of why people that were tremendously risk averse in 2006 decided that they had to get me compiled at the last minute because at that last minute it seemed least risky.
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