Quote of the Day: Pragmatism Needed!!

Chatting with a client this morning I found myself metaphorically using the weather to describe why we’re rotating to a new “core allocation” that we believe to be more resilient during turbulent financial conditions than was our previous mix of assets. I said that my job is akin to that of a weatherman; to, in essence, determine whether it’s smart to venture outside without, say, a jacket or a good strong umbrella. You know what I mean…

Speaking of weather as a metaphor for markets, I, ironically — given his parting words — just now finished Benoit Mandelbrot’s insightful and utterly enlightening book The Misbehavior of Markets. I find the following to be applicable to the economist, to the regulator/central banker, and to the investment practitioner as well:

“…pragmatism is needed in financial theory. It is the Hippocratic Oath to “do no harm.” In finance, I believe the conventional models and their more recent “fixes” violate that oath. They are not merely wrong; they are dangerously wrong. They are like a shipbuilder who assumes that gales are rare and hurricanes myth; so he builds his vessel for speed, capacity, and comfort — giving little thought to stability and strength. To launch such a ship across the ocean in typhoon season is to do serious harm. Like the weather, markets are turbulent. We must learn to recognize that, and better cope.” 


Recieve Between the Lines Posts to your Inbox

Sign up for lorem ipsum delores sin.

We care about the protection of your data. Read our Privacy Policy.
vulkan vegas, vulkan casino, vulkan vegas casino, vulkan vegas login, vulkan vegas deutschland, vulkan vegas bonus code, vulkan vegas promo code, vulkan vegas österreich, vulkan vegas erfahrung, vulkan vegas bonus code 50 freispiele, 1win, 1 win, 1win az, 1win giriş, 1win aviator, 1 win az, 1win azerbaycan, 1win yukle, pin up, pinup, pin up casino, pin-up, pinup az, pin-up casino giriş, pin-up casino, pin-up kazino, pin up azerbaycan, pin up az, mostbet, mostbet uz, mostbet skachat, mostbet apk, mostbet uz kirish, mostbet online, mostbet casino, mostbet o'ynash, mostbet uz online, most bet, mostbet, mostbet az, mostbet giriş, mostbet yukle, mostbet indir, mostbet aviator, mostbet casino, mostbet azerbaycan, mostbet yükle, mostbet qeydiyyat