1min chapter

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#27: Diego Parrilla On The Perpetual Search For Extreme Optionality

Superinvestors and the Art of Worldly Wisdom

CHAPTER

The Antibabel Effect: Correlation

The combination of high volatility and high correlation means that your var explodes. So the wealth effect that you discussed earlier, all these positive virtual cycles on the way up become obviously vicious cycles. The next chapter around the corner is liquidity and reflexivity, which I think are going to be dominant in 2019.

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